In case of demerger when a company transfers one or more businesses into a separate company it is a classic example of 

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Spin-offs, carve outs and split offs are forms of demergers. Demergers involve the separation of a company's business through the creation of one or more separate, publicly traded companies. In case of Spin-off the company transfers one or more businesses into a separate company. The company doing the transfer is called ‘demerged company’. The separate company into which the businesses are transferred is called ‘resulting company’. They can be done for various reasons like better focus on products, family split etc. In a spin-off, all shares of the company being spun off are distributed to the shareholders of the parent via a dividend. This results in full separation of the two entities in a single transaction. In a split off, the parent makes an offer to its shareholders to exchange their parent stock in exchange for all or a portion of the shares of its subsidiary. It is similar to a share buy-back of the parents stock using stock in a subsidiary as a consideration instead of cash. Split offs are typically done after the spin-off company has been taken public as a result of an IPO.