This is EXACTLY what is supposed to happen according to the rules of a Holding Company...
What Is a Holding Company?
A holding company is a parent corporation, limited liability company, or limited partnership that owns enough voting stock in another company, that it can control that company's policies and oversee its management decisions.
Although a holding company owns the assets of other companies, it merely maintains oversight capacities and therefore does not actively participate in running a business's day-to-day operations.