Investing.com-- Shares of Australian discount chain The Reject Shop Ltd (ASX: TRS ) more than doubled on Thursday after the Canadian retailer Dollarama Inc (TSX: DOL ) agreed to acquire the company for approximately A$259 million.

Dollarama and The Reject Shop entered into a binding scheme implementation agreement.

Dollarama’s A$6.68 per share offer represents a 112% premium to The Reject Shop’s last closing price of A$3.15.

The Reject Shop’s board has unanimously recommended the deal, which also has the backing of its largest shareholder, Kin Group, holding 20.8%.

Shares of the company surged 111% to A$6.65, just below Dollarama’s offer price. The Reject Shop’s stock was at its highest level since mid-Feb 2022.

The acquisition, subject to shareholder and court approvals, is expected to be completed in the second half of 2025, The Reject Shop said.

The deal will mark Dollarama’s entry into the Australian market, adding to its Canadian operations and Latin American investments.