What is an independent subsidiary?

Subsidiary independence refers to the fact that a listed company transfers its assets and liabilities to a newly established company, and the newly independent shares are distributed to the shareholders of the listed company in proportion, thus legally and organizationally separating the subsidiaries and forming a new company with the same shareholders as the listed company. The original shareholders enjoy the same proportion of rights and interests in the new company as in the listed company.

The listed company did not get any cash return in the process of transferring its assets to the new company, and the assets of its subsidiaries did not need to be re-evaluated. It is only the division of rights and interests between two independent entities, and the original shareholders have the right to decide whether to convert shares or hold shares between listed companies and subsidiaries.

Extended data:

The independence of subsidiaries is an important strategy to help companies correct mistakes or blind mergers and acquisitions, and improve the market value of companies by eliminating negative business synergy and negative financial synergy.

Form of change: there are often two forms of change to realize the independence of subsidiaries: split and split.

Merger means that the shares of the shareholders of the parent company are exchanged for the shares of the new company, while the share-trading means that the parent company is split into several subsidiaries, and the original parent company may no longer exist after the share-trading

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