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Sears Steps Up Canada Buyout

HOFFMAN ESTATES, IL-Sears Holdings Corp. backs down on its minimum buyout demand for Sears Canada and will buy shares for C$16.86.

By Jennifer D. Duell | Updated on February 07, 2006

HOFFMAN ESTATES, IL-Sears Holdings Corp. is pressing its pursuit of Sears Canada Inc., mailing out a take-over bid circular this week for all of the outstanding common shares of chain. The company is offering C$16.86 for all of the outstanding shares of the Canadian-based retailer, even though the stock is trading in the C$18 range.

Additionally, Sears Holding has waived its minimum condition, meaning that it will acquire any shares that it is able to instead of holding out for 100% of them. The organization already owns more than 57 million common shares of Sears Canada, representing roughly 53.8% of the outstanding common shares of the chain. The buyout involves 46.2% of Sears Canada shares that are not held by Sears Holdings. Sears Canada’s next largest shareholder, Natcan Investment Management Inc. had agreed to sell off its 9.7 million shares (or 9.06% of the outstanding shares).

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