Dollarama’s $5.91-Per-Share Deal for Reject Shop Finalised, Shares Suspended
The Federal Court has approved Dollarama’s acquisition of The Reject Shop, triggering a suspension of TRS shares on the ASX and setting the stage for upcoming cash payments to shareholders.
- Federal Court approves Dollarama’s scheme of arrangement for The Reject Shop
- TRS shares suspended from trading on ASX as of July 1, 2025
- Shareholders to receive a special dividend of $0.77 per share on July 14
- Scheme consideration payment of $5.91 per share scheduled for July 22
- Legal orders lodged with ASIC confirming scheme’s effectiveness
Court Approval Seals Dollarama’s Takeover of The Reject Shop
In a significant development for the Australian discount retail sector, The Reject Shop Limited (ASX – TRS) has officially become a part of Canadian retail giant Dollarama Inc. The Federal Court of Australia granted final approval to the scheme of arrangement, a legal mechanism facilitating the acquisition, on June 30, 2025. This approval marks the transaction as legally effective, a milestone that triggers immediate consequences for shareholders and the market.
Share Suspension and Upcoming Payments
Following the court’s endorsement, The Reject Shop’s shares were suspended from trading on the Australian Securities Exchange (ASX) at the close of trading on July 1, 2025. This suspension reflects the transition period as ownership transfers and the company prepares to delist. Shareholders holding TRS shares as of the special dividend record date, 7 – 00pm AEST on July 7, will receive a special dividend payment of $0.77 per share on July 14. Subsequently, those on the scheme record date, July 15, will be paid the scheme consideration of $5.91 per share on July 22.
Regulatory Compliance and Shareholder Communication
The Reject Shop has complied fully with regulatory requirements, lodging the court orders with the Australian Securities and Investments Commission (ASIC) as mandated under the Corporations Act. The company has also provided shareholders with a dedicated information line to address any queries related to the scheme and the associated payments. This transparent communication approach aims to ease the transition for investors navigating the acquisition process.
What Lies Ahead for The Reject Shop Under Dollarama’s Ownership?
While the acquisition is now legally binding, details on Dollarama’s strategic plans for The Reject Shop remain under wraps. Market watchers will be keen to see how the Canadian retailer integrates the Australian discount chain into its portfolio and whether operational changes or expansions are on the horizon. The suspension of shares also raises questions about the timing and conditions for any potential relisting or alternative trading arrangements.
Investor Implications and Market Sentiment
For investors, the acquisition offers a clear exit price through the scheme consideration, supplemented by the special dividend. However, the suspension of trading and the shift in ownership structure introduce a period of uncertainty. Analysts will be monitoring payment execution closely and assessing how Dollarama’s entry might reshape competitive dynamics in the Australian discount retail market.
Bottom Line?
With the acquisition now official, all eyes turn to Dollarama’s next moves and the future of The Reject Shop brand.
Questions in the middle?
- What operational changes will Dollarama implement post-acquisition?
- Will The Reject Shop eventually relist on the ASX or remain private?
- How will this acquisition affect competition in the Australian discount retail sector?
