Disinvestment refers to the process of reducing investment in a particular activity, asset, company, or location. Often used in the context of government policies and corporate strategy, it involves selling off or liquidating assets to reallocate resources more effectively.
Divestiture involves the loss or voluntary surrender of a right, title, or interest. It can also be a legal remedy where the court orders the offending party to rid itself of assets, often used in the enforcement of antitrust laws.
Forfeiture refers to the permanent loss of property for failure to comply with the law, resulting in the divestiture of the title of property, without compensation, for a default or an offense.
A type of corporate restructuring wherein a parent company divests itself of a wholly owned subsidiary by distributing shares in the latter to its own shareholders, making the subsidiary an independent company. This process often aims to increase shareholder value and improve the focus of both entities.
A type of corporate restructuring in which a parent company divests itself of a wholly owned subsidiary by giving its shareholders the opportunity to exchange their shares for shares in the subsidiary, thereby making it an independent entity. Unlike a spin-off where shares are distributed automatically, in a split-off, the parent company makes a tender to its shareholders, who can choose whether or not to acquire shares in the new company.
