SRG - Why Seritage Growth Properties Stock Skyrocketed Today
Shares of Seritage Growth Properties (NYSE: SRG) soared 80% on Friday after the property developer said it would seek the approval of its shareholders to sell its real estate holdings.
Seritage's board of trustees has been conducting a strategic review of its assets to maximize shareowner value. As part of those efforts, the board is recommending that shareholders vote during its annual meeting to allow Seritage to sell all its properties and distribute the proceeds to investors. The company would then be dissolved after the completion of those asset sales.
The board believes this plan will increase the number of potential buyers by eliminating the need for shareholders to approve each transaction. More bidders, in turn, could allow Seritage to sell its properties for higher prices.
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Why Seritage Growth Properties Stock Skyrocketed Today