Equity carve out

(redirected from Partial Spin-Off)

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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
References in periodicals archive ?
Brazil-based Bradesco said on Monday that its board of directors approved a plan to take over the net equity portions of HSBC Brasil through a partial spin-off.
In corporate news, Sony shares climbed 3 percent after Dan Loeb's Third Point hedge fund increased its stake and is upping the pressure on the company to agree a partial spin-off of its entertainment business.
Autogrill will seek to complete the partial spin-off by September, the paper added.
-- Completed partial spin-off of RXi Pharmaceuticals Corporation.
The two companies have said they hope to complete their tie-up, which includes the partial spin-off of Suez's water and waste-management business, at the start of next year.
That was about a year before the $600 million partial spin-off of OneBeacon, a Boston-based subsidiary in which White Mountains still maintains control.
Net profit at the maker of Nescafe coffee and Perrier water fell 18 per cent to pounds 2.63 billion, but this was due to a one-off boost in 2002 from the partial spin-off of eye care unit Alcon, the company said yesterday.
14 November 2012 - US retailer Sears Holdings Corp (NASDAQ:SHLD) said Wednesday it had concluded the partial spin-off of its shareholding in Sears Canada Inc (TSE:SCC).
14 November 2012 a[euro]" US retailer Sears Holdings Corp (NASDAQ:SHLD) said Wednesday it had concluded the partial spin-off of its shareholding in Sears Canada Inc (TSE:SCC).
Net income at Nestle, owner of some of the world's top food and drink brands, and a rival to Cadbury Schweppes, was pounds 3.5 billion, boosted by the partial spin-off of eye care unit Alcon but dented by an unexpectedly high pounds 514 million restructuring charge.
M2 EQUITYBITES-October 23, 2012-Sears Holdingsa[euro](tm) board approves of partial spin-off of Sears Canada interest(C)2012 M2 COMMUNICATIONS http://www.m2.com