Divestiture

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Divestiture

A complete asset or investment disposal such as outright sale or liquidation.

Divestiture

The removal of assets from a person or firm's balance sheet through sale, exchange, closure, bankruptcy, or some other means. Divestiture may occur when a person or company has acquired more than he/she/it can properly administer. This sort of divestiture may occur slowly; for example, a corporation may slowly sell subsidiaries to concentrate exclusively on its core competence. On the other hand, divestiture may occur because a person or company has become cash poor and needs to build liquidity very quickly.

divestiture

The sale, liquidation, or spinoff of a division or subsidiary. For example, a firm may decide to divest itself of a division in order to concentrate its managerial efforts on more promising segments of its business.
References in periodicals archive ?
For example, pressures from non-profit-oriented stakeholders may generate reputation costs to the top managers, relating to the negative public opinion on asset divesture attempts.
The company also expects to record a profit of approximately $1 billion from the divesture of its retail fiance business.
Each divesture provided Escalon with a stronger balance sheet and provided additional working capital, both of which enable it to grow its business.
Fitch expects proceeds from all of these divestures to be used for investments into its core businesses, acquisitions and for return of capital to shareholders (dividends and/or share buybacks).
04 charge related to store divestures which were not included in, and continue to be excluded from, the Company's 2009 annual outlook.
The divesture does not affect Recruitmax's core performance management applications.
Merrill Lynch Petrie Divesture Advisors served as the exclusive advisor on this transaction.
Davidson, Chief Executive Officer of Encore Medical Corporation, stated, "This divesture provides us with a strategic opportunity to reduce our indebtedness and focus additional resources on the continued growth of our core surgical implant and orthopedic rehabilitation product lines.
Bachmann, EPL's Chairman and Chief Executive Officer, commented, "We are very pleased to have received this compelling offer, which encouraged us to break out the onshore portion of our divesture package to accommodate the sale.
Per the divesture plan, Vault Financial's shareholders will receive entitlements to acquire one share of Finegold Services for each 20 shares of Vault Financial that they own as of 11:59 p.
Fitch will monitor the outcome of Kodak's ongoing review of potential uses for the remaining proceeds from the divesture.
After divesture of minor interests, the Company shall retain a 65% working Interest and shall be the operator of the field.