Sears Holdings mails offer to buy Sears Canada shares
10 Feb '06
2 min read
Sears Holdings Corporation has announced that it is mailing its offer to buy any and all of the outstanding common shares of Sears Canada Inc, other than those already held by Sears Holdings and its affiliates, for C$16.86 per share in cash.
Sears Holdings currently owns approx. 53.8 percent of the outstanding shares of Sears Canada. The offer is open for acceptance until 8:00 pm EST on March 17, 2006.
Alan Lacy, Vice Chairman of Sears Holdings, said, "Our offer represents full and fair value for Sears Canada. We firmly believe that our offer provides the best alternative for all Sears Canada shareholders and that Sears Canada's current market price reflects unrealistic market expectations for a higher bid."
"Sears Canada faces an increasingly competitive retail environment as is evidenced by its disappointing financial and operating performance. Unless Sears Holdings owns 100% of Sears Canada, Sears Canada will continue to struggle to compete against large U.S. and Canadian retail competitors and to make the changes necessary to adapt to this increasingly competitive retail environment in Canada," Lacy added.
While the offer is subject to customary conditions, it is not subject to a minimum tender condition. Sears Holdings will acquire any and all shares tendered to its offer prior to the expiration date.
In response to the announcement by Sears Holdings of its intention to make the offer, the Board of Directors of Sears Canada established an independent committee to supervise the preparation of an independent formal valuation of the shares of Sears Canada.
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