Divest

To deprive someone of power, rights, or possessions. It can also mean to rid oneself of something unwanted or undesirable, often financial holdings. The process typically involves selling off assets, reducing investments, or transferring ownership. The goal is often to remove oneself from an entanglement, to distance oneself from a problem, or to reallocate resources for a specific objective. Divestment can be a strategic decision motivated by ethical, financial, or political considerations. The term encompasses various actions, ranging from selling off entire companies to eliminating minor holdings.

Divest meaning with examples

• The activist group urged the university to Divest its endowment from fossil fuel companies, arguing it was unethical to profit from an industry contributing to climate change. This campaign aimed to pressure the institution to align its investments with its environmental values. The university's board was divided, as divesting would impact its financial performance and its ability to provide scholarships and support research initiatives.
• Following the scandal, the CEO was forced to Divest himself of his controlling stake in the company. The public outcry and pressure from shareholders demanded accountability, which prompted him to relinquish his position. The sale of his shares allowed the company to move forward and restore investor confidence. The new management had a responsibility to improve the company's image.
• The company decided to Divest its struggling subsidiary, selling it to a competitor to cut its losses. The sale was a strategic move to focus on its more profitable core businesses. This action would improve its financial standing and allow it to invest in new technologies. The business experienced an increase in profits and improved efficiency following the sale of the subsidiary.
• In an attempt to restructure their business, the corporation announced it would Divest itself of several non-core divisions to streamline its operations. The move to offload underperforming units, to better focus on the firms highest-performing product lines, and to optimize its return on investments will help the company improve efficiency. The reorganization was expected to increase profitability.
• After years of financial losses, the owner decided to Divest the property. It had become too costly to maintain the upkeep, despite their best efforts. The process of selling the property was an arduous one, but the owners had a sense of relief when the deal was closed. Now, the owner could seek more lucrative investments and be free of the ongoing costs of ownership.