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- Burgundy Diamond Mines (BDM) strikes a deal for the “transformational” acquisition of the “world-class” Ekati diamond mine in Canada
- The company enters a binding share purchase agreement (SPA) with Arctic Canadian to buy 100 per cent of shares in the owners of the mine
- In 2022, Ekati sold 4.2 million carats and recorded revenue of US$494 million (A$742 million)
- BDM will fork out US$136 million for control of the mine to become the largest ASX-listed diamond company and one of the largest listed diamond companies globally
- Shares in BDM have been suspended since December 2022 and last traded at 30 cents
Burgundy Diamond Mines (BDM) has entered a binding share purchase agreement (SPA) with Artic Canadian to acquire the “world-class” Ekati diamond mine in Canada.
BDM has agreed to acquire 100 per cent of the shares in the Artic companies that own the mine for a total cash consideration of US$136 million (A$209 million).
Burgundy labelled the proposed acquisition as “transformational”, positioning it as the largest ASX-listed diamond company and one of the largest listed diamond companies globally.
In 2022, Ekati sold 4.2 million carats and posted revenue figures of US$494 million, along with adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) of US$200 million.
Burgundy Executive Chairman Michael O’Keefe said the deal completed Burgundy’s goal of becoming truly vertically integrated across the diamond value chain.
“Having been involved with Burgundy since 2017, this exciting acquisition completes Burgundy’s vertically integrated business model: bringing some of the world’s most beautiful diamonds to market from discovery through to design,” Mr O’Keefe said.
“We are confident that both Burgundy and Ekati have a very bright future, and we expect this transaction will create significant value for all stakeholders.”
To support the acquisition, Burgundy announced it would complete an equity raising through a conditional placement of up to $150 million.
The placement is expected to take place in late April 2023.
Shares in BDM have been suspended since December 2022 and last traded at 30 cents.
