Demutualization of Cooperatives and Mutuals

Summary

Demutualization is the conversion of a co-operative, credit union or mutual into an alternative organizational form (usually one owned by investors). Demutualization can occur through the conversion of equity into investment shares, or it can occur via a merger, takeover or buyout involving companies that usually are not co-operatives or mutuals. Regardless of the form it takes, demutualization typically involves the transfer to private investors of the capital that has been built up over the years in the co-operative.