Sears Witnesses A Rise In Shares After Rumor About Merger With REIT

The retail store owners have experienced a rise in share value after the acquisition news got out.

In the most recent Sears Holdings News Update, what became evident was that the company has made an announcement in a recent press release in which it has disclosed the name of a new firm called Seritage Growth Properties which has huge plans for acquisitions. According to the most recently available data, it has become clear that this new company will be taking over a massive 254 stores of Sears, all in one go. This has come as a huge surprise to the investors and financial analysts but it has also been taken as pleasant news as the multinational retail store has been in a dire need for some help regarding the finances.

According to analysts, this new acquisition plan is expected to raise the fallen standard of the Sears retail stores. One of the main reasons why analysts came up with this analysis was that the shares of the multinational company experienced a huge rise in share value in which an increase of 11% was recorded on the stock index.

After the most recent trading session, Sears enjoyed a rise of 3.5% in the share price which showed that this new plans for a takeover by a new company might turn out to be in the favor of the Chicago-based company. According to analysts who are making coverage on the stock of the company are of the opinion that since the fall in the share value of the retail store firm, it has been finding it hard to regain its position in the financial market which has raised many concerned eyebrows of the investors over the period of time.

Therefore, the fact that Sears stores will be soon taken over by REIT has been welcomed warmly by analysts and investors alike. As the retail store giant falling stature in the financial market has made it clear that the company is in a bad position and any way through which the company can welcome cash will not be ignored.

After the selling of the Sears closing stores takes place, the company will be receiving a massive $2.5 billion with which the retail stores owners can make further plans to bring about positive changes in the management as well as the future endeavors of the company. Analysts believe that through this selling procedure, the firm will get a chance to fix a lot of the problems that have been troubling the retail company for quite some time.