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From Home Furnishing Business

Sears to Sell Big Stake in Sears Canada

October 3, 2014  by in Financial Reports, Industry   

ESL Partners and Edward S. Lampert, chairman and CEO of Sears Holdings, Hoffman Estates, Ill.; and chairman and CEO of ESL Investments, have advised Holdings that they intend to exercise their pro rata portion of the subscription rights in full as soon as practicable after such subscription rights have been distributed, though they have not entered into any agreement to do so.

Fairholme Capital Management, L.L.C. also has advised Holdings that it expects that certain of its clients will participate in the rights offering at levels to be determined, subject to review of the terms and conditions of the rights offering and regulatory considerations.

The move would divest Sears Holdings of most of its stake in Sears Canada.  The shares would go for $10.60 (Canadian) per whole Sears Canada share.