Sears Holding Corporation (NASDAQ:SHLD) is selling off most of its stake in the Canadian arm of its operations following months of speculation.
The Illinois-based retail giant announced October 2 that it aims to raise as much as $380 million by unloading up to 40 million shares in Sears Canada (TSX:SCC).
The parent company, which holds a 51% stake in Sears Canada, said in a statement the decision came “after significant consideration” in a bid to support its operations during the upcoming holiday and post-holiday shopping season.
Shareholders Edward Lampert and ESL Investments have told Sears Holding Corporation they intend to exercise their option to retain their subscription rights and acquire stock, according to the company.
No formal agreement to do so has been reached but Sears Holding Corporation said it expects to get at least $168 million in the deal by mid-to-late October.
The remaining $212 million from the deal is expected to come in by November.
Sears Holdings Corporation announced in May it was considering selling off its stake in the Canadian unit.
The latest development comes less than a week after Sears Canada CEO Douglas Campbell announced his intention to resign from the company by the end of 2014.
Campbell’s tenure began in September 2013 and Sears Canada announced that fall it was shuttering four outlets and laying off 800 workers . By January, it had announced another 1,600 lay-offs .
As of press time, Sears Canada’s stock was down 1.08%, trading at C$11.
