For the second time this year, the Rossy family is selling large blocks of Dollarama shares.
The Rossy family’s private holding company and the Rossy Foundation have agreed to sell a total of 1.95 million shares. This block of shares is worth $ 115 million at the current market price.
Dollarama stock closed at $ 59.22 on Tuesday on the Toronto Stock Exchange.
The sale of shares by the family holding company Investissements GRI is carried out for the purposes of “financial diversification” while the money raised by the foundation must be used to finance existing commitments to charitable organizations.
The Rossy Foundation’s mission is to improve the lives of Canadians, particularly in civic engagement, education and the arts, mental health, and cancer care.
This is the fifth time in just over two years that the Rossy family has sold large blocks of Dollarama shares. A block valued at 125 million was sold in the spring. Last December, shares worth 130 million were sold. A block of 150 million was also sold in June last year, as well as a block worth 100 million in September 2019.
Dollarama was founded in 1992 by Larry Rossy, the father of current CEO Neil Rossy. The company also announced Tuesday evening that Neil Rossy intends to donate 340,000 shares to the Rossy Foundation.
Neil Rossy, GRI Investments and the Rossy Foundation will henceforth hold an aggregate stake representing approximately 3.7% of the outstanding shares of Dollarama. At the current stock market price, this stake is worth around 660 million.
Dollarama unveiled its most recent quarterly performance last Wednesday, reporting earnings slightly above expectations. The results presented were recorded in a context where inflationary pressure is being felt in particular on costs.
Seven of the 14 analysts who officially follow Dollarama recommend buying the stock. Dollarama shares are enjoying another good year on the stock market. The title is up nearly 15% in 2021.