Demerger
Definition
What is Demerger?
A restructuringA significant change to a company's debt, operations, ownership, or organisation intended to improve viability. that separates one company or business group into distinct entities.
Example in practice
How This Looks in Practice
A group demerges its propertyLand and buildings held for use, rent, development, or capital appreciation. arm from its industrial operations.
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Related Terms
Rights Issue
An offer allowing existing shareholders to buy additional shares, usually in proportion to their holdings.
Corporate ActionsBonus Issue
An issue of additional shares to existing shareholders without a cash payment.
Corporate ActionsStock Split
An increase in the number of shares accompanied by a proportional reduction in price per share, leaving total value initially unchanged.
Corporate GovernanceProxy Vote
A vote cast by another person or electronically on behalf of a shareholder.