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 ?
In a spinoff, shareholders get their proportional interest in shares of the new company; in a splitoff, the parent company exchanges shares of its stock for shares in the new company.
Following the Splitoff, Blockbuster planned to initiate a new and ambitious business strategy to transform itself "from a place where you go to rent a movie to a brand where you go to rent, buy, or trade a movie or game[.
If an IPO, spinoff or splitoff occurs and Tronox Worldwide is released from its guaranty of the notes, Kerr-McGee will pay an additional consent fee (release fee) to each consenting holder for each $1,000 principal amount of notes as outlined below.
However, Kerr-McGee may choose to separate Newco Chemical Worldwide through a transaction not involving a sale, such as an IPO, a spinoff or a splitoff.
Earnings-per-share calculations for the year also benefited from a reduction in the number of shares of stock outstanding as a result of the Guidant splitoff completed in September 1995.
Earnings-per-share calculations for the quarter benefited from a reduction of approximately 32 million shares of stock outstanding as a result of the Guidant splitoff completed in September 1995.
Earnings-per-share calculations for the quarter benefited by a reduction of approximately 32 million shares of stock outstanding as a result of the Guidant splitoff completed in September, 1995.