Princeton Enterprises is a diversified cBlasco Distributors has become a large conglomerate. Its board of directors recently concluded that the firm has become so large that it has lost its efficiency. The board further concluded that the firm could be both more efficient and more profitable if it were divided into three distinct and separate firms. The board presented this suggested to the firm's shareholders and those shareholders voted and agreed to divide the firm. Dividing this firm into separate entities is referred to as a(n). 

1) lockup transaction. 

2) divestiture. 

3) equity carve-out. 

4) spin-off. 

5) split-up. company. 

In addition to its primary business operations, the firm is also the sole shareholder of a wholly owned subsidiary. As part of its restructuring plan, Princeton has decided to implement an IPO offering for shares in the subsidiary. This offering is equivalent to a 25 percent ownership stake in the subsidiary. What is the distribution of these shares called?