Sears Holdings Corp plans to sell most of its stake in Sears Canada

0
1084
Sycamore Partners may purchase Sears Canada

In an effort to generate money before the holiday season, Sears Holdings Corp plans to raise as much as $380 million by selling off 40 million shares of Sears Canada Inc. through distributing its rights. They will be put on sale for its shareholders on Oct. 20 at $10.60 per share.

Sears Holdings has experienced losses since mid-2012 and responded by closing stores, cutting inventory and selling off property and assets. Its stake in Sears Canada will fall from 51 per cent to a low 12 per cent. Sears Canada will also apply for a Nasdaq listing.

Sears Holdings has been attempting to raise funds for a while, including a short-term loan of $400 million taken last month from CEO Edward Lampert’s investment firm ESL Partners LP. Selling off its shares of Sears Canada will help the parent company reach a total of $1.45 billion raised this fiscal year. As of August 2, the company has $829 million in cash and equivalents and long-term debt and capitalized lease obligations of $2.82 billion.

LEAVE A REPLY

Please enter your comment!
Please enter your name here