Sears' holders to own 80 percent of spun off hardware unit

Fri Dec 9, 2011 9:38am EST

Customers walk into a Sears store at Fair Oaks Mall in Fairfax, Virginia, January 7, 2010.      REUTERS/Larry Downing

Customers walk into a Sears store at Fair Oaks Mall in Fairfax, Virginia, January 7, 2010.

Credit: Reuters/Larry Downing

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(Reuters) - Sears Holding Corp (SHLD.O) shareholders will end up with about 80 percent of the common stock in Orchard Supply Hardware Stores, following the spin-off of the hardware and garden stores unit, according to a regulatory filing.

Every 22.14 shares of Sears stock will entitle a holder to get one Class A share and one preferred share of the new company, the California-based unit said in the filing.

The distribution will be effective on December 30.

The 89-store chain said it intends to list its Class A common stock under the symbol 'OSH' on Nasdaq.

Sears shares fell more than 5 percent to $55.28 in early trade on Friday.

(Reporting by Ranjita Ganesan; Editing by Saumyadeb Chakrabarty)

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