partial spinoff

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.

partial spinoff

Distribution to stockholders or sale to the public of shares that represent a minority interest in a firm's subsidiary. A firm may undertake a partial spinoff when it considers the subsidiary is not properly valued by the public as part of the parent firm, or when it wishes to raise funds without giving up total control of the subsidiary.
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Per Icahn, the proposed partial spinoff will increase the equity holder's base and help them to remain competitive in the long run, thus boosting the progress of both the companies.
In these days of takeover fever, the horrible thought might arise that your company might be an easier target after a partial spinoff.
Earlier in 2008, we successfully completed the partial spinoff of RXi Pharmaceuticals which began trading on Nasdaq as RXII," stated Steven Kriegsman.
The decrease in G&A expenses in 2008 resulted primarily from a reduction of approximately $700,000 in RXi expenses and approximately $490,000 in professional fees which largely related to the partial spinoff of RXi.
Frontline expects to distribute approximately 25% of Ship Finance International's common shares to Frontline's common shareholders in a partial spinoff.
In addition, Frontline expects to distribute an Information Statement to its shareholders in connection with the partial spinoff.