Finance > M-a

Mountain Province gets friendly with Kennady Diamonds

Mountain Province Diamonds (CN:MPVD) has agreed to acquire Kennady Diamonds (CN:KDI) in a friendly, all-share transaction, bolstering the prospects for the former’s 49%-owned Gahcho Kué project in Canada’s Northwest Territories.

Staff reporter

Finance > M-a

Mountain Province gets friendly with Kennady Diamonds

Mountain Province Diamonds (CN:MPVD) has agreed to acquire Kennady Diamonds (CN:KDI) in a friendly, all-share transaction, bolstering the prospects for the former’s 49%-owned Gahcho Kué project in Canada’s Northwest Territories.

Staff reporter

Mountain Province gets friendly with Kennady Diamonds

The Kennady acquisition will complement Mountain Province's 49% stake in Gahcho Kué (pictured)

The deal, which would see each Kennady share exchanged for 0.975 of a Mountain Province share, implies an equity value of C$176 million (US$143 million). Based on the TSX closing price on January 26, this is equivalent to C$3.46 (US$2.80) per Kennady share - a 26% premium.