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)