The Reject Shop Shareholders Paid $5.91 Cash as Acquisition Finalizes
Dollarama Inc. has officially acquired The Reject Shop, paying shareholders $5.91 per share and triggering the retailer's imminent delisting from the ASX.
- Dollarama finalizes acquisition via scheme of arrangement
- Shareholders receive $5.91 cash per share plus prior $0.77 special dividend
- Trading suspended on ASX since July 1, delisting effective July 23
- Acquisition executed through Canadian subsidiary Dollarama International Inc.
- Shareholder support line remains open for post-scheme inquiries
Acquisition Completion Marks New Chapter
On July 22, 2025, The Reject Shop Limited officially became part of Dollarama Inc., concluding a transaction that has been closely watched by investors and retail analysts alike. The acquisition was executed through a scheme of arrangement, a legal mechanism that facilitated the smooth transfer of ownership to Dollarama’s Canadian subsidiary, Dollarama International Inc.
The deal valued The Reject Shop shares at $5.91 each, a figure that was paid in cash to shareholders who held stock as of July 15. This payment followed a fully franked special dividend of $0.77 per share distributed earlier in mid-July, underscoring the company’s effort to return value to shareholders ahead of the takeover.
Market Impact and Delisting
Trading in The Reject Shop shares was suspended on July 1, signaling the impending change in ownership and the end of the company’s independent listing on the Australian Securities Exchange (ASX). The formal removal from the ASX is scheduled for July 23, effectively closing the chapter on The Reject Shop as a publicly traded entity.
This delisting reflects a broader trend of consolidation within the discount retail sector, where larger players like Dollarama seek to expand their footprint through strategic acquisitions. The Reject Shop’s integration into Dollarama’s portfolio could reshape competitive dynamics in the Australian retail landscape.
Looking Ahead for Shareholders and the Retail Sector
While the transaction provides immediate financial returns to shareholders, questions remain about Dollarama’s strategic plans for The Reject Shop’s operations and brand. The retailer’s future under new ownership will be closely monitored, especially regarding potential changes in store formats, product offerings, and market positioning.
Shareholders with questions about the scheme are encouraged to contact The Reject Shop’s dedicated information line, ensuring transparency and support during this transition period. As the dust settles, market participants will be keen to see how this acquisition influences both companies’ trajectories and the broader discount retail market in Australia.
Bottom Line?
With the acquisition complete and delisting imminent, all eyes now turn to Dollarama’s next moves in reshaping The Reject Shop’s future.
Questions in the middle?
- What strategic changes will Dollarama implement for The Reject Shop’s retail operations?
- How will the acquisition affect competition in the Australian discount retail sector?
- What are the long-term financial implications for former Reject Shop shareholders?
