Sears Hldgs: to separate Sears Hometown, outlets businesses, some hardware

Sears Holdings announced that it intends to separate its Sears Hometown and Outlet Businesses and certain hardware stores through a proposed rights offering that is expected to raise approximately $400M-$500M. The rights will entitle holders to purchase shares in the combined Sears Hometown and Outlet Stores businesses and certain hardware stores and will be transferred to holders of Sears Holdings common stock. The record date, subscription price, subscription ratio and other terms of the rights offering have not yet been determined by the Board of Directors of Sears Holdings, but will be announced prior to the commencement of the offering. Proceeds from the share subscription will provide additional liquidity to Sears Holdings and are expected to be used for general corporate purposes. The separation will also enable Sears Holdings to focus on its core business.