What is a demerger?
A demerger is a corporate action where business operations are separated, and a separate entity is formed and listed on the stock exchange. In this article we discuss the definitions of a demerger, why companies participate in these corporate actions, and the implications for shareholders. Definition A demerger occurs when a large organisation decides to restructure its business and splits into different companies and list them as separate entities on the stock exchange. The parent company then issues shares of …