Sears Holdings plans partial spinoff of Sears Canada

Sears Holdings Corp. of Hoffman Estates said it plans to pursue a partial spinoff of its interest in Sears Canada Inc.

Sears Holdings, which currently owns approximately 95 percent interest in Sears Canada, plans to reduce its stake in Canada to 51 percent though distribution of some of its common shares. Subsequent to the spinoff, Holdings may sell, hold or distribute to holders of Holdings’ common stock any portion of its remaining interest in Sears Canada, the company said in a release.

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 Sears Holdings board of directors.

In the statement, the Hoffman Estates-based retailer said the spinoff will permit the two companies to focus on their respective businesses and allocate resources to best optimize returns. In addition, Sears Holdings said that the spinoff will potentially enhance the liquidity of holders of Sears Canada’s common shares.