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 ?
The distribution of Leju Shares or Leju ADSs or cash in lieu thereof in the partial spin-off will be characterized as a taxable dividend for United States federal income tax purposes.
In corporate news, Sony shares climbed 3 percent after Dan Loeb's Third Point hedge fund increased its stake and is upping the pressure on the company to agree a partial spin-off of its entertainment business.
The Romanian government set up the Minvest Rosia Montana company after the partial spin-off of the state owned miner Minvest Deva, which is the minority shareholder in the RMGC project company that plans to start mining gold and silver in Rosia Montana.
Completed partial spin-off of RXi Pharmaceuticals Corporation.
The two companies have said they hope to complete their tie-up, which includes the partial spin-off of Suez's water and waste-management business, at the start of next year.
That was about a year before the $600 million partial spin-off of OneBeacon, a Boston-based subsidiary in which White Mountains still maintains control.
63 billion, but this was due to a one-off boost in 2002 from the partial spin-off of eye care unit Alcon, the company said yesterday.
Following the partial spin-off of the data center business, Cincinnati Bell's remaining wireline and wireless businesses have growth prospects that are relatively weak.
Ashford Trust completed the partial spin-off of Ashford Inc.
5 billion, boosted by the partial spin-off of eye care unit Alcon but dented by an unexpectedly high pounds 514 million restructuring charge.
This partial spin-off simply allows us to address the changing landscape in North America while continuing to pursue our growth plans worldwide.
Following the partial spin-off, Sears Holdings has an approximately 51% ownership interest in Sears Canada.