Tiffany & Co. has sold its entire 13.9% stake of Aber Diamond Corp. for $268 million, it announced recently.
Diavik is one of the owners of the Diavik diamond mine in Canada’s Northwest Territories. Tiffany sold the shares to several financial institutions in a brokered deal led by Merrill Lynch. It originally paid $70 million for them.
The end of the deal also means that Tiffany Vice President and Chief Financial Officer James Fernandez has resigned from the Aber board.
Tiffany and Aber also made changes to their Diamond Supply Agreement so that Tiffany will pay market value for Aber’s rough diamonds instead of receiving a discount. Under the agreement, Tiffany is obligated to purchase at least $50 million worth rough diamonds from Aber each year. The agreement is due to expire in 2013.