Dollarama reveals plans to expand Latin American chain

Company ups stake in Dollarcity, which will open in Mexico

- TARA DESCHAMPS

Dollarama announced Wednesday that it had snatched up an additional 10 per cent interest in Dollarcity, which brings its total stake in the Latin American retailer to 60.1 per cent.

Dollarama Inc. has upped its stake in Dollarcity to 60.1 per cent and revealed it has big plans for expanding the Latin American chain.

Montreal-based Dollarama announced Wednesday that it had snatched up an additional 10 per cent interest in Dollarcity, which it intends to bring to Mexico.

The additional stake was acquired in exchange for 6,060,478 Dollarama common shares, which are worth about $761.7 million based on Dollarama’s share price of $125.68 on Tuesday. Dollarama also nabbed an option to buy an additional 9.89 per cent stake in Dollarcity at any time on or before Dec. 31, 2027.

Dollarama chief executive Neil Rossycalled the moves the “natural next step” in the ongoing partnership his company has with Dollarcity’s founding stockholders.