Русско-англо-русский юридический словарь

Spin-offs occur when a parent corporation distributes all or most of its holdings of stock in a subsidiary to the parent's shareholders based on the proportion to their holdings in the parent company, i.e. on a pro rata basis. As a result, the subsidiary company is no longer owned or controlled by the parent company and there are two separate publicly traded companies. Prior to the spin-off, shareholders only own the parent company's stock, whereas after the spin-off they own shares in both the parent and the subsidiary. In these transactions, no funds change hands, and the assets of the subsidiary are not revalued. The transaction is considered to be a stock dividend and a tax-free exchange under Internal Revenue Code Section 355.

It is important to distinguish corporate spin-offs from three types of related transactions—equity carve-outs, split-offs, and split-ups. Under an equity carve-out, a portion of the subsidiary's shares are offered for sale to the general public. This has the effect of injecting cash into the parent firm without the loss of control. Under a split-off, shareholders exchange their parent stock for the shares of the subsidiary. These transactions provide the company an opportunity to dispose of a subsidiary in a tax-free manner, and even to relieve itself of an unwanted shareholder. A split-up occurs when the parent distributes shares in each of its subsidiaries, and the parent firm liquidates and ceases to exist. (referenceforbusiness.com)

A subsidiary, subsidiary company or daughter company is a company that is owned or controlled by another company, which is called the parent company, parent, or holding company. (Wikipedia)

A subsidiary, subsidiary company, or daughter company is a company completely or partially owned or controlled by another company, called the parent company or holding company, which has legal and financial control over the subsidiary company. Unlike regional branches or divisions, subsidiaries are considered to be distinct entities from their parent companies; they are required to follow the laws of where they are incorporated, and they maintain their own executive leadership. (Wikipedia)