New Capital
Contrarian, deep value, long/short equity, special situations

Lands' End: Spin-Off Situation With 60%-90% Upside

Spin-off details

On April 4, 2014, Sears Holdings (NASDAQ:SHLD) has completed spin-off of Lands' End (NASDAQ:LE). The spin-off is part of Sears Holdings' strategy to realize shareholder value from its various businesses. The expectation was that a separate listing of Land's End operations would more accurately reflect Land's End's intrinsic value. This also gave investors a choice either to participate in the results of the Lands' End's business going forward or to sell the shares right away and consider the distribution as dividends from Sears Holdings.

For each share of Sears, equity holders received 0.3 shares of Lands' End. A total of 32m shares were distributed. Additionally, Sears Holdings received aggregate gross proceeds from the spin-off...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
FREESA PRO MEMBERS
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details