Explore the strategic corporate process of a demerger, where a single entity splits into two or more independent companies. This financial maneuver often aims...
Companies demerge to improve operational focus, unlock shareholder value, allow business units to pursue distinct growth strategies, or streamline complex operations.
Shareholders typically receive proportionate shares in the newly formed entities, often without immediate tax implications, and may benefit from increased valuation.
Key advantages include enhanced management focus, clearer investment profiles for each business, better capital allocation, and potential for higher aggregate market valuation.