Corporate Actions

Spin-Off

Definition

What is Spin-Off?

The separation of a business unit into an independent company whose shares are distributed to existing shareholders.

Example in practice

A conglomerate spins off its payments division into a separately listed company.

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An offer allowing existing shareholders to buy additional shares, usually in proportion to their holdings.

An issue of additional shares to existing shareholders without a cash payment.

An increase in the number of shares accompanied by a proportional reduction in price per share, leaving total value initially unchanged.

A vote cast by another person or electronically on behalf of a shareholder.

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