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Dear Sir,
Can you please explain what is meant by the statement,” normally demergers are undertaken to ensure that each company’s equity values are fair?”
If a company demerges then the managers of each division can pursue strategies that are best for their particular division (including for example having different financial structures). This can lead to share values in each that best reflect the potential returns from each of the companies.
sir, so is that the sole interest behind demerger? betterment of individual divisions?
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