Both a divestiture and a spin-off generally generate a cash infusion for the parent.
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Spin-offs are generally immediately taxable to shareholders.
A split-up involves the creation of a new class of stock for each of the parent’s operating subsidiaries, paying current shareholders a dividend of each new class of stock, and then dissolving the remaining corporate shell.
In a spin-off, the board of directors is the same as the board of directors of the parent firm.
In a spin-off, the proportional ownership of shares in the new legal subsidiary is the same as the stockholders’ proportional ownership of shares in the parent firm.