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.
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.
Merrill Lynch Petrie Divesture Advisors served as the exclusive advisor on this transaction.
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.
The cash consideration of this divesture is approximately SEK1,009m.
Fitch will monitor the outcome of Kodak's ongoing review of potential uses for the remaining proceeds from the divesture.
These were partly offset by the divesture of two Anvil businesses with net sales of USD30.
The divesture covered 100% of the working interests in undeveloped oil and gas leases totaling 18,441 gross (14,865 net) acres acquired under its leasing program initiated in 2005.
The company has now completed the divesture of Plantworld International, Inc and as such, the shares that were issued in the transaction have now been cancelled.
We do not expect the divesture will result in a material gain or loss from the sale, but that it should be slightly accretive to future periods.
In total, this accounts for $250M-$300M in cumulative divestures inclusive of completed and pending divestitures.