Split-Off

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Split-Off

The process whereby a parent corporation organizes a subsidiary corporation to which it transfers part of its assets in exchange for all of the subsidiary's capital stock, which is subsequently transferred to the shareholders of the parent corporation in exchange for a portion of their parent stock.

A split-off differs from a spin-off in that the shareholders in a split-off must relinquish their shares of stock in the parent corporation in order to receive shares of the subsidiary corporation whereas the shareholders in a spin-off need not do so.

References in periodicals archive ?
XigniteSplitOff Accurately Prices Multi-Billion Dollar Split-Off Transactions Via Custom Investor Websites
Xignite, the leading pure-play provider of financial web services for mission-critical corporate applications, today announced the availability of XigniteSplitOff, a complete solution that delivers live stock market data to web applications to power corporate split-off transactions and investor communication.
The split-off of Consumer Products Group will be carried out under the corporate split provisions of the Japanese Commercial Code.
Outline of New Consumer Products Company Company Name: Pending decision President: Pending decision Head Office: Tokyo, Japan Split-off date: April 1, 2002 (provisional) Capital: Pending decision Employees: Approximately 18,000 (at time of split-off) Business: Development, manufacture and sales of consumer products and peripheral systems Sales: About 560 billion yen (The fiscal year ending March 31, 2002) About 600 billion yen (The fiscal year ending March 31, 2004) Outline of Manufacturing Subsidiaries Hitachi Tochigi Technology Co.