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 ?
We also estimated hazard models which included a set of indicators for whether the child had splitoff from the parental household.
The Southern Baptists have been on the wrong side of just about every issue since their founding in 1845 as a pro-slavery splitoff from the regular Baptists: mixed dancing, racial segregation, equality for women and, my personal favorite, converting the Jews.
Cooper Industries is offering to exchange one share of Cooper Cameron Corporation (CCC) for a fraction of each Cooper share in a corporate splitoff. A splitoff is a tax-free, non-pro-rata distribution of a subsidiary's stock and is rarely done by public companies.
Splitoff families are excluded from the sample to facilitate data base management.