The Federal Court has approved The Reject Shop’s proposal for acquisition by Dollarama to be carried out through a scheme of arrangement.
The scheme will become legally effective Tuesday (July 1) when The Reject Shop is expected to lodge a copy of the court orders with the Australian Securities and Investments Commission (Asic).
The retailer will also request that the quotation of its shares be suspended on the ASX from the close of trading the same day.
Shareholders holding shares on the special dividend record date are expected to receive 77 cents cash for each share, with those holding shares on the scheme record date expected to receive the scheme consideration of $5.91 per share.
The Reject Shop’s low-cost pricing strategy has been facing challenges from cheap online retailers over the last few years.
The acquisition by Canadian dollar store Dollarama will enable the company to continue its international expansion.
