Sears Holdings Corp Announces Plan To Pursue Partial Spin-Off Interest In Sears Canada Inc.

Sears Holdings Corp announced that Board of Directors has approved plans to pursue a partial spin-off of interest in Sears Canada Inc. Holdings, which currently owns approximately 95% of the issued and outstanding common shares of Sears Canada, expects to distribute common shares of Sears Canada held by Holdings on a pro rata basis to holders of Holdings' common stock such that following the spin-off, Holdings will retain approximately 51% of the issued and outstanding common shares of Sears Canada. Subsequent to the spin-off, Holdings may sell, hold or distribute to holders of Holdings' common stock any portion of its remaining interest in Sears Canada. Following the spin-off, Sears Canada will continue to be listed on the Toronto Stock Exchange. Holdings expects to continue to include Sears Canada as a consolidated subsidiary in Holdings' Consolidated Financial Statements following the spin-off. Holdings has the right not to complete the spin-off if, at any time.