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Public sale of equity in a subsidiary in which parent retains control is called A. a pure play. B. a spin-off. C. an equity carve-out.

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Question added by Vinod Jetley , Assistant General Manager , State Bank of India
Date Posted: 2014/12/14
LABIB KOOLI
by LABIB KOOLI , Quality Assurance Manager & Training Consultant , Tunisian Vocational Training Agency (ATFP)

Equity carve-out (ECO), also known as a split-off Initial Public Offer (IPO) or a partial spin-off, is a type of corporate reorganization, in which a company creates a new subsidiary and subsequently IPOs it, while retaining management control. Only part of the shares are offered to the public, so the parent company retains an equity stake in the subsidiary. Typically, up to20% of subsidiary shares is offered to the public.

Mukesh Varadhan
by Mukesh Varadhan , Administration Manager , M/s. Triton Health Care

Thanks for the invitation Mr. Vinod. I do not know much on this. But, the answer from Mr. Labib helped me to know more on this. 

Alex Al Yazouri
by Alex Al Yazouri , General Manager , Al Mushref Cooperative Society

The correct answer is (C) An Equity Carve-Out.

Ibrahim Hussein Mayaleh
by Ibrahim Hussein Mayaleh , Sales & Business Consultant and Trainer , Self-employed

It is for sure an equity carve-out (C)

georgei assi
by georgei assi , مدير حسابات , المجموعة السورية

The correct answer C

Nikhil E
by Nikhil E , Sr. Customer Service Executive , Aster Clinic-ASTER JUBILEE MEDICAL COMPLEX

Thanks for the invitation. Its equity carve-out.

Vinod Jetley
by Vinod Jetley , Assistant General Manager , State Bank of India

C. an equity carve-out.

VENKITARAMAN KRISHNA MOORTHY VRINDAVAN
by VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.

Agreed with those who are having the option of: C. an equity carve-out.

Ghanendra Mishra
by Ghanendra Mishra , Social Worker , International Organization for Migration

C

Divyesh Patel
by Divyesh Patel , Assistant Professional Officer- Treasury , City Of Cape Town

C is the correct answer

Muhammad  Sultan
by Muhammad Sultan , Police Officer , Punjab Police (Dolphin Squad Lahore)

Thanks for invitation 

Very good and informative Question

I will be go with the option ( C  )

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