splitoff


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Split-Off

A relatively rare situation in which a parent company offers to its shareholders stock in a subsidiary in exchange for a comparable amount of stock in the parent company. This allows the parent company to divest itself of the subsidiary. See also: Splitoff IPO.

splitoff

An exchange of the stock of a subsidiary for a pro rata surrender of stock in the parent corporation. A splitoff is similar to a spinoff, but in the case of the splitoff a smaller (or no) decline in the stock of the parent corporation should take place. Compare spinoff.
References in periodicals archive ?
If Kerr-McGee proceeds with the sale of the chemical business or otherwise does not proceed with an IPO, spinoff or splitoff of Tronox Worldwide (or any successor to or parent of Tronox Worldwide), the release fee will not be paid.
If the proposed amendment becomes operative and Newco Chemical Worldwide is released from its guaranty of the notes as a result of an IPO, spinoff or splitoff, Kerr-McGee will pay an additional consent fee (release fee) to each consenting holder for each $1,000 principal amount of notes as outlined below.
355(e) on the interpretation of "plan (or series of related transactions)" for affected spinoffs, splitoffs and split-ups.
Protection of the tax-free status of corporate spin-offs, split-ups or splitoffs (Section 355);
Activism, Bankruptcy, Carve Outs, Deep Value with Catalyst, Demutualizations, Directors Dealings, Distressed Securities, Liquidations, Merger Securities, Mergers & Acquisitions, Post-Re-Orgs, Privatizations, Recapitalizations, Recovery Situations, Equity Restructurings, Reverse Mergers, Reverse Morris Trusts, Rights Offerings, Special Dividends, Spinoffs, Splitoffs, Share Buybacks, Tender Offers and Turnarounds.
Because the S corporation is the vehicle of choice for many small businesses, it is only natural that there is more activity currently in the area of splitoffs, acquisitions and other restructurings.
Barr is a tax lawyer advising clients on federal income tax matters, including mergers, acquisitions, spinoffs, splitoffs, private equity investments and financial products.