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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...

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