Equity carve out

(redirected from Partial Spin Off)

Equity carve out

Usually occurs when a company decides to IPO one of their subsidiaries or divisions. The company usually only offers a minority share to the equity market. Also known as carve out.

Equity Carve Out

The act or process of a company making an IPO on one of its subsidies without fully spinning off. During an equity carve-out, the parent company becomes majority shareholder and only offers a minority share to the market. This gives the subsidiary a degree of autonomy (such as its own board of directors) while still retaining access to resources at the parent company. Most of the time, an equity carve-out ultimately results in the parent company fully spinning off the subsidy. It is also called a partial spin off.
References in periodicals archive ?
4, 2014 /PRNewswire-FirstCall/ -- E-House (China) Holdings Limited ("E-House" or the "Company") (NYSE: EJ), a leading real estate services company in China, today announced the details of the partial spin off of Leju Holdings Limited ("Leju"), which is a majority-owned subsidiary of E-House, and its ADSs are currently traded on the New York Stock Exchange (NYSE: LEJU).
This strategic partial spin off is in line with Ultimate's previously announced transformation into a venture development company.
Frontline announces the partial spin off of Ship Finance International Limited ("Ship Finance") through the distribution of one share in Ship Finance for each four shares held in Frontline.