Dollarama’s $6.68 Per Share Offer Wins Reject Shop Shareholder Approval
The Reject Shop held a virtual Scheme Meeting approving Dollarama's $6.68 per share acquisition offer, reflecting a substantial premium and unanimous board support. The deal now awaits Federal Court approval, with implementation expected by late July.
- Shareholders vote on Dollarama's $6.68 cash per share acquisition scheme
- Offer represents a premium of over 110% to recent trading prices
- Board unanimously recommends approval, supported by Independent Expert
- Major shareholder Kin Group pledges support for the scheme
- Scheme subject to Federal Court approval and customary conditions
A Defining Moment for The Reject Shop
On 23 June 2025, The Reject Shop Limited convened a virtual Scheme Meeting to decide the fate of its proposed acquisition by Canadian retailer Dollarama Inc. The meeting marked a pivotal juncture, with shareholders asked to approve a scheme of arrangement offering $6.68 cash per share. This price includes a $5.91 scheme consideration plus a fully franked special dividend of $0.77, delivering an attractive premium well above recent market prices.
A Premium Offer Backed by the Board and Experts
The Reject Shop’s board unanimously recommended shareholders vote in favour of the scheme, citing the compelling value and certainty it provides. The offer price represents a premium of approximately 112% over the last closing price before the deal announcement and exceeds the valuation range set by Kroll Australia Pty Ltd, the Independent Expert appointed to assess the transaction. The expert concluded the scheme is fair and reasonable and in the best interests of shareholders, barring any superior proposal.
Strong Shareholder Support and Next Steps
Notably, Kin Group Pty Ltd, the largest shareholder controlling around 20.7% of shares, confirmed its intention to vote in favour, reinforcing momentum behind the deal. The meeting’s procedural details ensured all shareholders could participate equally via an online platform, reflecting modern governance practices. The scheme’s implementation remains contingent on shareholder approval by requisite majorities, Federal Court sanction scheduled for 30 June, and other customary conditions. If approved, the transaction is expected to complete by 22 July 2025.
Implications for Investors and the Retail Sector
This acquisition signals a significant shift in the Australian discretionary retail landscape, with Dollarama expanding its footprint through a well-valued, all-cash offer. For Reject Shop shareholders, the deal offers immediate liquidity at a premium, mitigating risks associated with ongoing market volatility. However, shareholders weighing the offer must consider potential tax implications from the special dividend and the absence of a superior competing bid to date.
Looking Ahead
As the scheme moves towards final court approval, market participants will be watching closely for any emerging rival proposals or changes in expert opinions. The Reject Shop’s transition under Dollarama’s ownership will also be a key focus, particularly how the integration will affect operational performance and shareholder value in the medium term.
Bottom Line?
With shareholder approval secured, all eyes now turn to Federal Court endorsement and the unfolding integration under Dollarama’s stewardship.
Questions in the middle?
- Will any superior acquisition proposals emerge before the Federal Court hearing?
- How will Dollarama’s ownership impact The Reject Shop’s strategic direction and operations?
- What are the tax implications for shareholders receiving the special dividend?
