This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Sears Canada Announces Possible Partial "Spin-Off" By Sears Holdings

Stocks in this article: SCC

TORONTO, May 17, 2012 /CNW/ - Sears Canada Inc. (TSX: SCC) ("Sears Canada" or the "Company") announced today that Sears Holdings Corporation ("Sears Holdings"), which holds approximately 95% of Sears Canada's common shares, has advised it that Sears Holdings' board of directors has approved plans to pursue a distribution (on a pro rata basis to its stockholders) of a portion of its holdings in Sears Canada such that, immediately following the spin-off, Sears Holdings would retain approximately 51% of the issued and outstanding shares of Sears Canada. Sears Holdings has indicated that subsequent to the spin-off, it may sell, hold or distribute to holders of Sears Holdings' common stock any portion of its remaining interest in Sears Canada.

Sears Canada expects that the proposed distribution by Sears Holdings would, if completed, be anticipated to increase the public float and potentially the liquidity of Sears Canada shares. In connection with the distribution, Sears Canada is expected to file documents with the United States Securities and Exchange Commission and the Canadian Securities Administrators.

"We are looking forward to working with Sears Holdings on its plan to pursue a partial spin-off of its shares in Sears Canada.  While we have benefited from a close relationship with Sears Holdings, we believe this distribution would provide an increased focus on our performance as an independent company and enhance the liquidity of holders of Sears Canada's common shares," said Calvin McDonald, President and Chief Executive Officer, Sears Canada Inc.

The transaction would be subject to, among other things, obtaining required regulatory approvals.  This press release does not constitute an offer of any securities for sale.

This release contains information which is forward-looking and is subject to important risks and uncertainties. These forward-looking statements include, but are not limited to, statements regarding the occurrence and form of any distribution of Sears Holdings' interest in Sears Canada. Whenever used, words such as "will," "expect," "anticipate" and other terms of similar meaning are intended to identify such forward-looking statements.  Factors which could cause actual results to differ materially from current expectations include, but are not limited to: general economic conditions; competitive conditions in the businesses in which Sears Canada participates; Sears Holdings' decision not to pursue the distribution or to change the structure or terms of any distribution, the ability to obtain required regulatory approvals to facilitate the distribution (assuming that it proceeds); and changes in laws, rules and regulations applicable to Sears Canada and Sears Holdings. There can be no assurance as to the timing of the distribution, whether it will ultimately be structured as a spin-off or whether it will be completed. While Sears Canada believes that its assumptions are reasonable, results or events predicted in this forward-looking information may differ materially from actual results or events. Sears Canada intends the forward-looking statements to speak only as of the time made and, except as required by law, do not undertake to update or revise them as more information becomes available.

Sears Canada is a multi-channel retailer with a network that includes 196 corporate stores, 278 hometown dealer stores, 29 home services showrooms, over 1,500 catalogue and online merchandise pick-up locations, 105 Sears Travel offices and a nationwide home maintenance, repair, and installation network. The Company also publishes Canada's most extensive general merchandise catalogue and offers shopping online at www.sears.ca

SOURCE Sears Canada Inc.

Copyright 2011 PR Newswire. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,805.41 +127.51 0.76%
S&P 500 1,964.58 +13.76 0.71%
NASDAQ 4,483.7150 +30.9230 0.69%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs