Two Dominion Board Members Resign Following Investor Criticism

Dominion, which owns the Ekati mine and 40 percent of Diavik, also partially confirmed reports of a possible sale

Two board members of Dominion Diamond Corp., which owns the Ekati mine and 40 percent of the Diavik mine, have resigned after activist investors criticized the company’s management.

In late December, a letter from Josef Vejvoda, portfolio manager of K2 & Associates Investment Management, which owns 5.4 percent of the company, complained the company had passed up many opportunities to deliver shareholder value. 

It is not clear if the resignations had anything to do with K2’s action. The Dominion statement said they both resigned for “personal reasons.”

A source later told Reuters that K2 plans to seek its own slate of directors.

Another Dominion statement somewhat confirmed a Bloomberg report that said it has hired Rothschild & Co. to explore a possible sale.

“Rothschild, which has historically acted as the company’s financial advisor on a number of strategic matters, was retained earlier this year to assist the company and its board of directors in considering a number of possible initiatives to maximize shareholder value,” it said, without specifying any possible initiatives.

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