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Demerger is a form of corporate restructuring in which the entity's business operations are segregated into one or more components. These companies can then either

Demerger is a form of corporate restructuring in which the entity's business operations are segregated into one or more components. These companies can then either operate as a separate entity to the parent company or be sold off and merged into a third company. A demerger can take place through a spin out by distributed or transferring the shares in a subsidiary holding the business to company shareholders carrying out the demerger. The demerger can also occur by transferring the relevant business to a new company or business to which then that company's shareholders are issued shares of new company. TASK: Why should Zesco Ltd be demerged, and with rational reasons, suggest suitable subsidiaries

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