Dollarama Inc. → The Reject Shop Limited (ASX:TRS)
completedCanadian value retailer Dollarama agreed to acquire all outstanding shares of Australian discount retailer The Reject Shop via a scheme of arrangement, for total cash consideration of A$6.68 per share — comprising a A$5.91 scheme payment plus a A$0.77 fully franked special dividend. The deal implied an enterprise value of approximately A$419-421 million (on a post-AASB16 lease-adjusted basis), against an equity value of around A$259 million. The scheme was approved by shareholders in June 2025 and completed in July 2025, with TRS delisted from the ASX on 23 July 2025.
Dollarama sought an established discount-retail platform to enter the Australian market, viewing The Reject Shop's ~390-store national network as a base for international expansion, with public commentary from Dollarama pointing to ambitions to grow the chain toward 700 stores over the following decade.
The Reject Shop board recommended the deal given the A$6.68 total offer represented a 108-112% premium to the pre-announcement share price, providing shareholders certain, substantial value after a period of trading well below that level, and access to Dollarama's scale, sourcing and operating expertise to accelerate the turnaround.
The Reject Shop's shares surged roughly 109-112% on the 26 March 2025 announcement, jumping from a A$3.15 close to around A$6.60, reflecting the large premium offered. Dollarama's own shares were not materially affected given the deal's small size relative to Dollarama's market capitalisation.
Coverage highlighted the deal as a rare foreign takeover of a struggling ASX-listed discount retailer, with commentators framing the large premium as reflecting how far The Reject Shop's share price had fallen relative to its underlying store network and turnaround potential under new ownership.
Deal mechanics
National Bank Financial, Inc. (financial advisor to Dollarama)
UBS Securities Australia Ltd (financial advisor); SBA Law (legal advisor) to The Reject Shop
All-cash scheme of arrangement: A$5.91 per share scheme consideration plus a A$0.77 per share fully franked special dividend, totalling A$6.68 per share.
Implemented via an Australian scheme of arrangement requiring shareholder and Federal Court approval; shareholders approved the scheme in June 2025 (97.3% of holders present and voting, 99.98% of votes cast), and the Federal Court subsequently approved the scheme, with completion in July 2025.
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Learn more
- DOLLARAMA TO ACQUIRE AUSTRALIAN DISCOUNT RETAILER THE REJECT SHOP
- Dollarama completes its acquisition of The Reject Shop
- The Reject Shop board backs Canadian retailer Dollarama's $259m takeover proposal
- Canada's Dollarama to acquire Australia's largest discount retailer, The Reject Shop, for A$259 million