Carve out


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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 equity 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 ?
Transactions Platinum Equity completed in 2014 included carve outs from Volvo, Telstra and Bemis.
There is also the possibility of having carve outs for individual countries to maximize gains for India.
OSCPA staff continues to watch a number of provisions in the budget, including the removal of the consolidation of state boards and commissions (including the Accountancy Board of Ohio), eliminating potential carve outs from the Commercial Activity Tax (CAT), and ensuring the annual CAT filing date moves from Feb.