Sears plans partial spinoff of Sears Canada
Sears Holdings Corp. has announced plans to pursue a partial spinoff of its interest in Sears Canada.
The move will reduce the Hoffman Estates, Ill.-based Sears Holdings’ stake in Sears Canada from 95% to about 51%, the company said.
In a press release Thursday, Sears said it expects Sears Canada to file documents with the Securities and Exchange Commission and the Canadian Securities administrators over the next few months with the expectation of completing the proposed spinoff during the 2012 calendar year.
Following the spinoff, Sears Canada will continue to be listed on the Toronto Stock Exchange.
Sears Holdings said it believes that the spinoff will permit each of Sears Canada and Holdings to focus on their respective businesses and allocate resources to best optimize returns on assets employed.
Sears Holdings expects to continue to include Sears Canada as a consolidated subsidiary in Sears Holdings' Consolidated Financial Statements following the spinoff.
The spinoff is subject to a number of conditions, including approval of securities filings by the board of directors of Sears Canada, review by the relevant securities regulators and final approval of the Holdings board of directors.