spin-off
USA
A mechanism for separating out a division or line of business from its parent company. Spin-offs are typically used to increase stockholder value by increasing the value of the business being spun-off or removing a business that no longer fits within the parent structure. In a traditional spin-off, the parent company forms a subsidiary corporation (if the line of business or division is not already a subsidiary) and transfers the relevant assets to that subsidiary. The parent company then dividends shares of that subsidiary to the stockholders of the parent company. Alternative structures include:
• Split-off: an exchange offer in which the stockholders of the parent company exchange their stock in the parent for stock in the new entity.
• Split-up: the parent distributes the stock of its subsidiaries to its stockholders and then the parent dissolves. Following the split-up, the stockholders of the former parent own the stock of the different subsidiaries.
• Partial spin-off: a spin-off where the parent company retains a minority interest in the subsidiary.
• Subsidiary Offerings: the parent makes a public offering of its subsidiary's stock.
• Tracking stocks: the parent creates an additional class of shares intended to track the performance of a subsidiary. The stock can then be distributed in whichever way the parent chooses (for example, to the public or to its existing stockholders).
The type of structure depends on many factors including: securities regulations, corporate dividend laws and commercial, industry and tax considerations.
For more information on spin-offs, see Practice Note, Spin-offs: Overview (www.practicallaw.com/2-503-1986) and Standard Document, Spin-off Transaction Checklist (www.practicallaw.com/4-503-0354).

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.


spin-off
The situation that arises when a parent corporation organizes a subsidiary corporation, to which it transfers a portion of its assets in exchange for all of the subsidiary's capital stock, which is subsequently transferred to the parent corporation's shareholders.

Dictionary from West's Encyclopedia of American Law. 2005.


spin-off
The situation that arises when a parent corporation organizes a subsidiary corporation, to which it transfers a portion of its assets in exchange for all of the subsidiary's capital stock, which is subsequently transferred to the parent corporation's shareholders.

Short Dictionary of (mostly American) Legal Terms and Abbreviations.

Look at other dictionaries:

  • Spin-Off — (en français pousse, jet, rejet) est un terme anglais désignant dans l univers économique, une société commerciale née de la scission d une société plus grande. Dans le domaine artistique, il désigne une œuvre dérivée d une autre, mais qui n est… …   Wikipédia en Français

  • Spin off — (en français pousse, jet, rejet) est un terme anglais désignant dans l univers économique, une société commerciale née de la scission d une société plus grande. Dans le domaine artistique, il désigne une œuvre dérivée d une autre, mais qui n est… …   Wikipédia en Français

  • Spin off — puede referirse a: En terminología empresarial, un derivaje (escisión) (o spin off en inglés) es una nueva organización o entidad derivada de la escisión de una mayor. En televisión, el spin off es la iniciación de una nueva serie de ficción cuyo …   Wikipedia Español

  • spin-off — /spin awf , of /, n. 1. Com. a process of reorganizing a corporate structure whereby the capital stock of a division or subsidiary of a corporation or of a newly affiliated company is transferred to the stockholders of the parent corporation… …   Universalium

  • spin–off — / spin ˌȯf, ˌäf/ n: a transfer of corporate assets to a subsidiary in return for a distribution to the shareholders of the corporation of all of the stock or controlling stock of the subsidiary without surrender of any stock by the shareholders… …   Law dictionary

  • spin-off — s.m.inv. ES ingl. {{wmetafile0}} TS telev. serie televisiva che sviluppa le vicende di personaggi già comparsi in una precedente serie come personaggi secondari {{line}} {{/line}} DATA: 1993. ETIMO: ingl. spin off propr. l allargare il campo di… …   Dizionario italiano

  • spin-off — spin offs 1) N COUNT: usu with supp, oft N from/of n A spin off is an unexpected but useful or valuable result of an activity that was designed to achieve something else. The company put out a report on commercial spin offs from its research. 2)… …   English dictionary

  • spin-off — spin|off [ˈspınɔf US o:f] n 1.) a television programme involving characters that were previously in another programme or film 2.) a separate and partly independent company that is formed from parts of an existing company, or the action of forming …   Dictionary of contemporary English

  • Spin-off — [sp...] das od. der; [s], s <aus engl. spin off »[zufälliges] Nebenprodukt, nicht geplantes Resultat«>: 1. Übernahme von bestimmten technisch innovativen Verfahren od. Produkten (z. B. aus der Raumfahrt) in andere Technikbereiche. 2.… …   Das große Fremdwörterbuch

  • spin-off — spin′ off or spin′off n. 1) bus a by product of something preexisting, as a program of research or technological development 2) bus a media product, as a television series, based on an idea or character in a preexisting product 3) bus the… …   From formal English to slang

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