Equity carve out

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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.
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Founded in 1989, the firm has invested in 72 companies with aggregate value of over $60 billion in the form of traditional buyouts, going-private transactions, recapitalizations, growth capital investments, corporate carve-outs and selective public equity and debt positions.
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Kalra, who is now the chairman of newly-set up Shiv Nadar & Sanjay Kalra Associates (SNSK) said, "We are a group of operational executives with capital looking for buy-outs, carve-outs in the healthcare technology space in the US .
India : $500 mn fund established by HCL's Shiv Nadar, Sanjay Kalra to acquire US healthcare technology firm and invest in startups
Avista is a contract development and manufacturing organization (CDMO) formed through the recent, strategic carve-outs of the CMC business of Array BioPharma, Inc.
SCYNEXIS COMPLETES SALE TO AVISTA PHARMA SOLUTIONS
Companies seeking to optimise their business face complexity in both IFRS and US GP accounting for mergers, acquisitions, initial public offerings and carve-outs.
Kingdom 'set for growth'
That's a very bad precedent, and it's raising alarm among American producers worried that other countries will seek their own carve-outs.
U.S. editorial excerpts -2-
We examine the efficiency of initial public offering (IPO) pricing using a sample o[over 300 equity carve-outs from 1985 to 2009.
Does IPO pricing reflect public information? New insights from equity carve-outs
Aterian's principals have extensive experience investing in complicated situations including corporate carve-outs, restructurings both in and out of bankruptcy, and strategic investments necessary to build and enhance value for all stakeholders.
Christopher Thomas Joins Aterian Investment Partners
The lender's ability to include in the loan documentation an extensive list of carve-outs or exceptions to the non-recourse provisions for certain enumerated events or egregious behaviours by the borrower is very much a function of market conditions and the negotiating strength of the parties.
"Bad Boy" Carve-Outs
It will be phased-in across the board without any carve-outs.
House aims to vote on tax extenders bill
Loans under this program are non-recourse with no carve-outs, and do not require yield maintenance or defeasance prepayment penalties.
Eastern Mortgage Capital funds affordable senior apartments
While the emergence of MBHO carve-outs is a development specific to the behavioral health care sector, it has much greater implications in the broader overall study of contracts and market incentives.
Economic incentives and contracts: the use of psychotropic medications
For more than 20 years, the Valley has managed to escape the area-code carve-outs that have hit much of the rest of metropolitan Southern California.
EDITORIAL NUMBER'S UP VALLEY'S BIG ENOUGH FOR 747
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