The split-off point is the juncture in a joint production process when two or more products become separately identifiable.
In a split-off point, a parent firm divests a business unit using particular structured conditions as corporate reform. There are various ways to structure a divestiture. Options include split-offs, spin-offs, and carve-outs, each having a unique architecture.
In the case of a split-off, the parent company gives shareholders the choice of either keeping their existing shares or exchanging them for shares of the firm that is splitting off. Unlike earlier divestitures, there is no pro rata distribution of the outstanding shares. To increase interest in the claims of the new firm, the parent company may decide to offer a premium for the exchange of shares in some split-offs.
Thus, It is a Split-off point that is being talked about here.
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