Demergers benefit manufacturing companies
A report from business advisory firm, Deloitte, highlights the increased value manufacturing businesses realise from a demerger and sale process.
The firm says analysis of global data spanning 10 years showed that parent companies increase their share prices by an average of 23% a year after announcement, while spun off ‘child’ companies achieve a 15% share premium to their initial value a year after the demerger.
Demergers in the manufacturing sector outperforms other industry groups, it says. One year after announcement, manufacturing industry parents achieve a 38% premium to their share price.
