Carve-out tsansactions and Spin-off transactions

Spin-off transactions and Carve-out tsansactions

		Spin-off	Carve-out
Creating a new entity out of a company's business line or one of its subsidiaries		Yes	Yes
Granting shares in the new entity to the existing shareholders of the parent company.		Yes
The shareholders are then free to sell their shares in the spin-off company in the marketplace.		Yes
Generally viewed as a favorable sign in the market?		Yes (*1)
Minority of shares is sold to the public while the majority portion of the new shares are held by the parent company (they are NOT distributed to existing shareholders).			Yes

(*1) because they often result in greater efficiency for the spin-off company and the parent company.