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Sears Holdings raises Sears Canada offer

03 Apr '06

2 min read

Department-store chain Sears Holdings Corporation informed that its wholly-owned subsidiary SHLD Acquisition Corp has increased its offer for all outstanding common shares of Sears Canada to C$18.00 per share and entered into an agreement with Vornado Realty LP under which Vornado Realty LP has agreed to deposit its 7,500,000 shares to the enhanced offer no later than Friday, April 7th 2006.

As a result of the increase in price, SHLD Acquisition Corp has extended its offer until 11:59 p.m. (Eastern Daylight Time) on April 18th 2006.

SHLD Acquisition Corp has also amended the offer to provide that any dividend paid after the date of the offer, including any regular quarterly C$0.06 per share dividend that may be paid, will be for the account of and must be remitted to SHLD Acquisition Corp by any tendering stockholders. Under the terms of the amended offer, SHLD Acquisition Corp will no longer reserve the right to purchase shares on the TSX during the term of the offer.

Giving effect to the tender of the Vornado shares, Sears Holdings and its affiliates will own 75,437,870 common shares of Sears Canada, or over 70 percent of the outstanding shares of Sears Canada, and will have acquired over 35 percent of the minority interest in Sears Canada.

Sears Holdings continues to discuss a support agreement at the revised offer price with certain shareholders who together own sufficient shares to assure Sears Holdings of a majority of the minority shares, and believes that agreements at the revised offer price will be reached and announced during this extension period.

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