Minority Interest
Short definition
Minority interest is the book or economic claim of holders who do not (fully) control. In the EV–equity bridge, treating it as debt-like or equity-like moves price.
Detailed explanation
Company-law exit rights and valuation define the minority’s cash right separately. The NCI line in consolidation may not equal the cash dividend right.
A puttable minority can be classified as debt. Leaving a minority in an acquisition leaves a control premium and a governance cost.
Why it matters for the CFO
If the net-debt definition treats the minority as debt, the equity price falls. The reverse makes EV look cheaper than it is.
How to read it
A minority discount depends on liquidity and control rights; there is no universal percentage.
Related calculators
Güven Sayılgan’s writing on this topic
An Exceptional Remedy Protecting Minority Shareholders against Persistent and Serious Abuse by the Majority: the “Exit Share Price”
The “exit share price” is an exceptional remedy protecting minority shareholders against majority abuse. An outline of the just-cause dissolution action and exi
5 min read
Read → FinansHow Should the “Exit Share Price” Be Calculated under TCC Art. 531?
Under TCC Art. 531, the exit share price must be calculated not on nominal capital, but on the market value of equity determined as of the date closest to the j
3 min read
Read → FinansWhy Did the CMB Restrict Large Shareholders’ Share Sales?
The Capital Markets Board’s regulation of 28 August 2026 ties off-exchange share sales by certain large shareholders to thresholds based on free float. The aim
7 min read
Read →Related terms
What to learn next
Definitions are educational. They are not investment, credit or tax advice.