The Reject Shop Announces AUD 0.77 Fully Franked Special Dividend
The Reject Shop Limited has announced a special fully franked dividend of AUD 0.77 per share, contingent on the approval of its acquisition by Dollarama Inc. Key dates for the dividend include an ex-dividend date of 4 July and payment on 14 July 2025.
- Special fully franked dividend of AUD 0.77 per share
- Dividend conditional on acquisition scheme approval
- Ex-dividend date set for 4 July 2025
- Shareholder meeting scheduled for 23 June 2025
- Court approval expected by 30 June 2025
Special Dividend Announcement
The Reject Shop Limited (ASX – TRS), a well-known player in Australia's discount retail sector, has announced a special dividend of AUD 0.77 per ordinary share. This dividend is fully franked, meaning it carries a tax credit for shareholders, and represents a significant return ahead of a major corporate event.
Conditional on Acquisition Scheme
The dividend payment is conditional upon the successful implementation of a scheme of arrangement related to the proposed acquisition of The Reject Shop by Canadian retailer Dollarama Inc. This acquisition, first announced in March 2025, involves Dollarama's wholly owned subsidiary, Dollarama International Inc., and is subject to several approvals.
Shareholders are set to vote on the scheme at a meeting scheduled for 23 June 2025. Following this, a court hearing on 30 June 2025 will seek judicial approval. The scheme is expected to become effective upon lodgement of court orders with the Australian Securities and Investments Commission (ASIC) around 1 July 2025.
Key Dates and Payment Details
The ex-dividend date is set for 4 July 2025, with the record date following on 7 July. Payment of the dividend is scheduled for 14 July 2025, assuming all approvals are secured and the scheme becomes effective. The dividend does not relate to a specific financial period but is a special distribution tied directly to the acquisition event.
Implications for Investors
This special dividend offers shareholders an immediate financial benefit ahead of the ownership transition. The fully franked nature of the dividend enhances its attractiveness by reducing the effective tax burden. However, the conditional nature of the dividend means investors must await the outcome of the shareholder vote and court approval before the payment is guaranteed.
For The Reject Shop, this move signals a strategic milestone, potentially unlocking new growth opportunities under Dollarama's ownership. For Dollarama, the acquisition expands its footprint into the Australian discount retail market, a sector with strong consumer demand dynamics.
Bottom Line?
Investors will be watching closely as shareholder and court approvals approach, determining whether this special dividend will materialize alongside a transformative acquisition.
Questions in the middle?
- Will shareholders approve the acquisition scheme at the June meeting?
- Could court approval face delays or conditions impacting the dividend timing?
- How will the acquisition affect The Reject Shop’s future dividend policy?
