As previously reported by
Jeweller last year, the company announced that it had
acquired BHP Billiton’s 80 per cent stake in the mine for US$500 million, a deal which would increase its share in the rough diamond sector.
According to a statement released by the diamond jeweller, C. Fipke Holdings (Fipco) has commenced an action in the Ontario Superior Court of Justice against Harry Winston Diamond Corporation, BHP Billiton and a number of other affiliates.
The claim alleges that the offers made by BHP Billiton to Fipco do not comply with Fipco’s pre-emptive rights to buy the assets under the joint-venture agreement and contends Harry Winston Diamond Corporation was complicit.
Fipco, who holds a 10 per cent interest in the mine also reportedly claims that Harry Winston Diamond Corporation’s debt financing arrangements for the acquisition have interfered with its ability to arrange its own financing.
The claim seeks an order of the court prohibiting the company from purchasing BHP Billiton's interests unless and until BHP Billiton provides Fipco with revised offers.
“The company [Harry Winston] and BHP Billiton believe that the claim by Fipco is entirely without merit, and intend to vigorously defend the action in order to proceed with the purchase and sale of the Ekati Mine,” the statement said.
The parties have entered into an agreement that calls for the case to be resolved on an expedited basis, aiming for a final ruling before 15 April 2013. The agreement provides that, if the ruling is in favour of Harry Winston Diamond Corporation and BHP Billiton, the mine’s purchase can be completed before 15 May 15.
The purchase of Ekati mine is just one of a number of strategic business decisions made by the company to expand its standing within the rough diamond segment.
Jeweller reported just last week that it had
sold its watch and jewellery division to Swiss brand Swatch.