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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Frontline said that it expects to distribute some 25% of Ship Finance International's common shares to Frontline's common shareholders in a partial spinoff.
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.
Wattles has promised Wall Street a partial spinoff of Reel, to reduce its impact on Hollywood's balance sheet, but the IPO has been stalled while e-commerce IPOs remain cool.
These two attributes include all types of spinoff on the TSX including REITs, partial spinoffs, and full split-offs.