# Carve-out

**IRI:** https://folio.openlegalstandard.org/R9fU3LWOxgJp4CwRmoUeqbr

## Labels

**Translations:**

- de-de: Carve-out
- en-gb: Carve-out
- es-es: Exclusión
- es-mx: Exclusión
- fr-fr: Carve-out
- he-il: פיצול
- hi-in: कार्व-आउट
- ja-jp: カーブアウト
- pt-br: Carve-out
- zh-cn: 剥离

## Definition

A carve-out divestiture is a corporate action in which a company partially divests a business unit, division, or subsidiary by selling a minority stake, often through an initial public offering (IPO). The parent company retains majority ownership and control of the carved-out entity, while the new shareholders hold a minority stake. Carve-out divestitures are typically executed to raise capital, unlock value, or allow the separated entity to focus on its core competencies while maintaining a strategic relationship with the parent company.

## Sub Class Of

- https://folio.openlegalstandard.org/RsaC1DeVmdIpw8YKXA9JNt

**Deprecated:** False