Equity carve out

(redirected from Partial Spin-Offs)

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 ?
But even partial spin-offs are worthwhile only after a new business has evolved significantly.
One approach is to execute a partial spin-off. [2 ]The sale by Hughes Electronics (then a satellite manufacturer and defense electronics supplier) of 2.5 percent of DIRECTV to AT&T caused its share price to jump by more than 20 percent.