Sears Rights Offer Goes Out Big
Sears Holdings Corp. (NASDAQ: SHLD) today launched a rights offering in advance of the planned IPO of its Sears Hometown and Outlet stores spinoff, scheduled for next month. More than 24 million options were traded today and the price rose…
Sears plans spinoff more than 1,230 Hometown, Outlet, and hardware stores in a public offering designed to unlock the value that management and chairman Eddie Lampert believe is hidden in the retail giant that owns Kmart and Sears stores. Further asset dispositions, including real estate sales and a portion of the company’s Sears Canada division, are not only possible but likely, especially if this first spinoff lives up to expectations.
The Hometown and Outlet stores spinoff will trade on the Nasdaq under the ticker symbol “SHOS”.
Shares of Sears closed up 7.7% today at $60.90 in a 52-week range of $28.89 to $85.90. The after-hours market has not been so kind, however. Shares are down about 4.3% in after-hours trading at $58.26.
Paul Ausick
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Paul Ausick has been writing for 247Wallst.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.
He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.
