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  "documentTitle": "Third Point Management | Activist Presentation Deck | 102 slides",
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  "notes": "Includes footnotes referencing Nikkei Asian Review and definitions of corporate split schemes.",
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      "text": "Key conditions:",
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      "text": "Sony’s shareholders only receive shares issued by the newly established corporation proportionate to their shareholding ratio in Sony; No party owns more than 50% of Sony before the corporate split and it is expected that no party would own more than 50% of the newly established corporation after the corporate split; At least one of Sony’s existing directors or important employees will become a senior director of the newly established corporation; The main assets/liabilities of the spin-off business are transferred to the newly established corporation; Approximately 80% or more of directors/employees engaged in the semiconductors business are expected to be engaged in businesses of the newly established corporation; The newly established corporation is expected to continue to operate the semiconductors business",
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      "text": "Our research indicates that Sony’s semiconductor business can be spun off “tax-free” under the Companies Act of Japan",
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      "text": "Accomplished via: 1) “spin-off” scheme/corporate split2 and 2) a tax-qualified share dividend",
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      "text": "Previously, spin-offs were treated as a sale in Japan, with corporate tax being due on the difference between fair value and book value of assets. This discouraged Japanese corporations from using a restructuring method popular among their Western peers1",
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      "text": "In 2017, the Japanese government passed tax reform that allowed companies to spin off divisions tax-free, a measure designed to encourage management to “act boldly with shareholders in mind”1",
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      "text": "1. “Japan eyes tax break for spinoffs.” Nikkei Asian Review, Nikkei. 19, November 2016. 2. A spin-off scheme is the creation of a new corporation as Sony’s wholly-owned subsidiary and simultaneous transfer of the Semiconductor business to the new corporation.",
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