Sears Hometown and Outlet Stores, Inc. engages in the retail sale of home appliances, lawn and garden equipment, tools, and hardware in the United States. It operates in two segments, Sears Hometown (Hometown) and Sears Outlet (Outlet). The Hometown segment operates Sears Hometown Stores that offer products and services across a range of merchandise categories, including home appliances, lawn and garden equipment, tools, sporting goods, and household goods; and Sears Hardware Stores, which provide products and services across a range of merchandise categories, such as home appliances, lawn and garden equipment, tools, fasteners, electrical supplies, plumbing supplies, and other home improvement products. It also operates Sears Home Appliance Showrooms that offer home appliances and related services in stores primarily located in strip malls and lifestyle centers of metropolitan areas; and Buddy's Home Furnishing Stores. In addition, this segment operates SearsHometownStores.com, SearsHardwareStores.com, and SearsHomeApplianceShowroom.com domain names. The Outlet segment provides in-store and online access to purchase outlet-value products across an assortment of merchandise categories comprising home appliances, mattresses, apparel, sporting goods, lawn and garden equipment, and tools, as well as other household goods that include furniture. It also sells its products through searsoutlet.com. The company also offers various services, such as home delivery, installation, and extended service plans. As of May 4, 2019, the company, and its independent dealers and franchisees operated a total of 639 stores across 49 states, as well as in Puerto Rico and Bermuda. Sears Hometown and Outlet Stores, Inc. is headquartered in Hoffman Estates, Illinois.
This stock is at $3.67 today, however from what I've read it is supposed to sell to Transform Holdco for no more that $3.25 a share in the next week or two. What am I missing? Why would it be above the sale price. I am sure I am missing something, so please educate me. Thanks.
Apparently there is an adjustment clause. HOFFMAN ESTATES, Ill., June 3, 2019 /PRNewswire/ -- Transform Holdco LLC ("Transform" or "the new Sears"), a leading integrated retailer and home to Sears and Kmart, and Sears Hometown and Outlet Stores, Inc. ("Sears Hometown") (NASDAQ: SHOS) today announced that they have entered into a definitive merger agreement whereby Transform will acquire the outstanding shares of Sears Hometown not owned by ESL Investments, Inc. and its affiliates for a price of $2.25 per share in cash, subject to an upward adjustment in the event a sale of Sears Hometown's Outlet Segment has occurred that satisfies criteria specified in the merger agreement. ESL Investments, Inc. and its affiliates, the majority owners of Transform, presently hold 58% of the outstanding shares of Sears Hometown. http://shos.com/investor-information/ https://en.wikipedia.org/wiki/ESL_Investments https://www.prnewswire.com/news-rel...hometown-and-outlet-stores-inc-300860416.html https://www.marketbeat.com/stocks/N...m_source=GeneralSocialMedia&utm_medium=Social
Page 7 on their most recent 10-Q is what is confusing me. The link is below. It says the merger will result in no more that $3.25 per share price. Maybe they are going to declare a dividend which makes up the difference? Or some other investor group is going to try to buy them for more. I really don't know. It is also easy to find the paragraph by doing a Ctrl+f when you open that link and searching for 3.25 or 2.25. Full disclosure, I have $2.50 puts so will lose money on this almost guaranteed unless the sale falls through. https://www.sec.gov/Archives/edgar/data/1548309/000154830919000091/sho-080319x10q.htm
It dropped to $3.30 after hours on news that the sale of some stores to the Franchise Group went through today. That price is more reasonable.
