Dia Met accepts BHP’s $437 million cash offer

style=’MARGIN: 0in 0in 0pt’>Dia Met Minerals Ltd. Toronto, on Monday said that it has accepted a $437 million all cash offer from Australian mining giant BHP Ltd., Reuters reported.

 

Under the terms of the deal, BHP will offer approximately $13.24 in cash a share for all the outstanding shares of the diamond mining company, which owns a 29% interest in the Ekati Diamond mine, Canada’s first diamond mine of which BHP Diamonds Inc. is the operator.

 

Dia Met said in a release that its board of directors supports the bid and recommended that shareholders tender their shares.

 

Dia Met also said that its two largest shareholders, who hold approximately 20% of the outstanding class A subordinate voting shares and 39% of the outstanding class B multiple voting shares, have entered into a lock-up agreement with BHP and have agreed to tender their shares to the offer.

 

The offer is subject to a condition that at least 75% of each class of shares be tendered.