Like the spin-off, the split-off is also a spin-off. A part of a company isoutsourced and becomes independent. While the transfer of shares takesplace as a distribution in the case of a spin-off, the shareholders have thechoice in the case of a split-off. They must decide whether they wish to holdthe shares of the parent company or those of the subsidiary.
In the split-off, shareholders can either retain the shares of the parentcompany or exchange (some or all) shares of the parent company for sharesof the new subsidiary. In most cases, a split-off occurs after an IPO. The offer tothe shareholders can be determined on the basis of the market pricedetermined there. The offer itself is usually slightly higher than the price of theparent company. For the shareholders, this is an incentive to accept the offer.