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 ?
The successful completion of a split-off transaction requires accurate and timely calculations of daily "volume-weighted average prices" (VWAP) during the offer period based on the parent's and the subsidiary's traded shares.
Companies such as McDonald's and Halliburton have recently used XigniteSplitOff to accurately price and execute complex, multi-billion dollar split-off transactions, and then to seamlessly update the posting of transaction terms on web sites that are launched specifically to support investor communication.
The split-off of Industrial Components & Equipment Group will be carried out under the corporate split provisions of the Japanese Commercial Code.
Outline of New Industrial Components & Equipment Company Company Name: Pending decision President: Pending decision Head Office: Pending decision Split-off date: April 1, 2002 (provisional) Capital: Pending decision Employees: Approximately 4,800 (at time of split-off) Business: Manufacture, sales, and servicing of industrial components and equipment Production bases: Chiba Prefecture, Niigata Prefecture and Shizuoka Prefecture Sales: About 149 billion yen (The fiscal year ending March 31, 2002) About 158 billion yen (The fiscal year ending March 31, 2004) Outline of Companies Involved Hitachi Service & Engineering (EAST), Ltd.
CHAPTER 4 Corporate Law Issues in Spin-Off, Split-Up and Split-Off Transactions
CHAPTER 5 Securities Law Issues in Spin-Off, Split-Up and Split-Off Transactions