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Bain Capital Partners sells remaining stake in Dollarama for $300m

Published: 16:17 28 Jun 2011 BST

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Dollarama (TSE:DOL) reported on Tuesday that a major shareholder has agreed to sell all of its remaining shares in the discount retailer in a block trade to an unnamed financial institution, for C$297.6 million.

Bain Dollarama (Luxembourg) One S.à r.l, an entity indirectly owned by private equity firm Bain Capital Partners, agreed to sell its remaining 9.2 million common shares of Dollarama for $32.50 a share.

Bain Capital's stake reflected 12.4% of Dollarama’s 73.65 million outstanding shares as of June 9, according to Thompson Reuters data.

Back in January, Boston-based Bain and Dollarama’s management team sold 11.65 million shares to investment banks at $21.50 per share, valued at around $250 million. Bain Capital purchased a majority stake in Dollarama in 2004.

"We are pleased to have been able to count Bain Capital as one of our major shareholders,” said chief executive of Dollarama, Lawrence Rossy.

"The company will continue to benefit from the vast experience and expertise of the Bain Capital representatives that currently serve on our board of directors,” Rossy added.

The sale is expected to close on June 30, the company said in a news release.

Dollarama, which operates 667 stores across Canada, began trading publicly on Oct. 13, 2009 as shares were originally sold for $17.50, and have climbed steadily since then.

The Montreal-based company has locations within metropolitan areas, in mid-sized cities and in small towns, and offers a broad range of everyday consumer products, general merchandise and seasonal items at fixed price points of up to $2.

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