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Sears Holdings buys 10.16m Sears Canada shares, extends offer

20 Mar '06

3 min read

Sears Holdings will also seek to nominate and elect other directors who are either Sears Holdings or Sears Canada employees. Given its majority ownership of Sears Canada, Sears Holdings believes it is appropriate that a majority of the directors of the new board of Sears Canada be employees of either Sears Holdings or Sears Canada.

In the event that Sears Holdings does not acquire a majority of the minority of Sears Canada, Sears Canada will face the increasingly competitive Canadian retail environment without the financial and operating benefits of being owned 100 percent by Sears Holdings. Therefore, Sears Holdings, consistent with its practice in the US, will support the elimination of the recent practice of Sears Canada of paying quarterly dividends of C$0.06. In addition, it would not support any extraordinary dividend or distribution to public shareholders in 2006.

Sears Holdings Corporation is the nation's third largest broadline retailer, with approx. $55 billion in annual revenues, and with approxi. 3,900 full-line and specialty retail stores in the US and Canada.

Sears Holdings Corporation

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