The use of spin-offs is spreading among large Japanese companies. Against a backdrop of tax system improvements and growing emphasis on capital efficiency in corporate management, FUJIFILM Holdings Corporation is considering a partial spin-off, under which it would retain a portion of the shares in the business being separated.
More large Japanese companies are using spin-offs. Against a backdrop of tax system improvements and growing emphasis on capital efficiency in corporate management, spin-offs are attracting increasing attention as a way to restructure business portfolios.
FUJIFILM Holdings Corporation is considering what is known as a “partial spin-off,” in which the parent company continues to hold a portion of the shares in the business being separated. The aim is to advance business restructuring while retaining part of the capital at the parent company.
Under the proposed rules, if certain requirements are met in fiscal 2023, the parent company will be able to defer capital gains tax on the transfer even if it retains an interest of less than 20%.