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De-merger

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De-merger
A corporate strategy to sell off subsidiaries or divisions of a company.

Notes:
For example, in 2001 British Telecom did a de-merger of its mobile phone arm, BT Wireless, in an attempt to boost the performance of its stock. British Telecom took this action because it was struggling under high debt levels from the wireless venture.


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TSX/ASX:LIM, LSE:LOR) ("LionOre") today announced that shareholder approval has been received in respect of one of the conditions of its takeover offer for Australian Stock Exchange-listed mining company MPI Mines Limited ("MPI") relating to the de-merger of MPI's gold assets.
In parallel to LionOre's offer, MPI is undertaking a de-merger of its gold assets through a capital reduction and distribution to MPI shareholders.
By their nature, forward-looking statements involve certain risks and uncertainties including, but not limited to, the ability to complete transactions with investors, the ultimate success of the de-merger process, product and market acceptance risks, the impact of competitive pricing, product development, commercialization and technological difficulties and other risks detailed in the Company's filings with the Securities and Exchange Commission.
 
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