Carve-out

What Does Carve-out Mean?
1. Sometimes known as a partial spinoff, a carve out occurs when a parent company sells a minority (usually 20% or less) stake in a subsidiary for an IPO or rights offering.

2. Where an established brick-and-mortar company hooks up with venture investors and a new management team to launch an Internet spinoff.

Investopedia explains Carve-out
In most cases the parent company will spinoff the remaining interests to existing shareholders at a later date when the stock price is much higher.

Also known as a "carveout" or an "equity carve out."