In this form of equity carve-out, the parent company exchanges stock that it owns in the subsidiary for some of the parent shares owned by its shareholders:

Question

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In a split-off, the parent company offers its shareholders the opportunity to exchange shares of the parent company for shares of a subsidiary, effectively separating the two entities. This process allows shareholders to choose between holding shares in the parent company or the subsidiary.

In This Form of Equity Carve-Out, the Parent Company Exchanges