L&T plc is planning to demerge into two separate listed companies

Lassila & Tikanoja is planning to demerge into two separate listed companies, one of which would focus on the circular economy and the other on property services. The demerger requires approval from an extraordinary general meeting in December. The circular economy company would continue with the name Lassila & Tikanoja, while the property services company would be named Luotea. If the demerger is implemented, the new companies will start operations on December 31, 2025.

If implemented, the demerger is set to take place at the turn of the year 2026

The demerger still requires approval from an extraordinary general meeting in December
Services will continue as usual with the same personnel and contact persons
If the demerger is implemented, your company's facility services partner will be called Luotea after the turn of the year
The demerger will not bring any changes for customers of L&T's circular economy services.

What does the demerger mean for customers?

The planned demerger will not require any action from our customers, and it will not affect the current L&T services, contracts, pricing, or terms. Services will continue as usual with the same personnel and contact persons.

In circular economy services, contact persons' email addresses and customer service contact details will remain unchanged.

In property services, email addresses will change to reflect the new Luotea company name, and customer service contact details will be updated from the beginning of 2026. For example, employees' work clothes will also gradually change to reflect the new Luotea company name and brand. A sneak preview of the new Luotea website's front page can be found at luotea.com.

We will communicate more targeted information to our customers as the autumn progresses.

Frequently asked questions

Why are the businesses being separated?

According to the Lassila & Tikanoja Oyj Board of Directors, the demerger of the circular economy and property services businesses could increase shareholder value by enabling more effective implementation of targeted strategies and growth opportunities for both businesses.

The Board believes that the demerger is expected to improve the performance of the new Lassila & Tikanoja and Luotea businesses through increased agility, separated decision-making, and stronger management focus. As two separate companies, the new Lassila & Tikanoja and Luotea are also positioned to grow faster both organically and inorganically, thanks to a more efficient capital allocation strategy.

The Board believes that the separation into two separate companies would increase the attractiveness of the companies and facilitate the valuation of the businesses. Additionally, the separation would clarify management, simplify the structures of the companies, and increase transparency and clarify responsibilities.

Which business operations are planned to be demerged?

The company focusing on circular economy business, proposed to retain the name Lassila & Tikanoja Plc, would encompass operations in Finland and Sweden related to waste management and recycling, recycling of hazardous waste, industrial cleaning services and sewer maintenance services, as well as environmental construction.

The company focusing in facility services, proposed to be named Luotea Plc, would include operations in Finland and Sweden that serve built environments, such as cleaning and support services, property maintenance, technical services, energy efficiency solutions, and landscaping and outdoor area services.

How will the potential demerger affect services?

Services will continue as usual. If the demerger is implemented, facility services will be managed and billed under the new Luotea name from the turn of the year.

The demerger will not affect circular economy services, such as waste management and recycling, hazardous waste, sewer maintenance, environmental construction, or industrial services. These services will continue to be provided under the Lassila & Tikanoja name.

Under what names will the companies operate?

According to the demerger plan, the company will be divided so that the circular economy business will be transferred to a new, independent company to be established in connection with the demerger, which will be named Lassila & Tikanoja Oyj.

The company's facility services business will remain with the company in the demerger, and the company is intended to be renamed Luotea Oyj in connection with the demerger.

How is the demerger planned to proceed?

On 7th August 2025, the Board of Directors of the company has approved a demerger plan concerning the separation of the Circular Economy business area into an independent listed company.

The demerger is subject to approval by the Extraordinary General Meeting (“EGM”) of the company, expected to be held on 4 December 2025.

The planned completion date of the demerger is 31 December 2025.

The demerger and listing prospectus, which is expected to be published by the company in November 2025 before the EGM, will contain more detailed information on the Demerger and the listing of the new circular economy company.

Where can I get more information about the potential demerger?

We will inform our customers in a targeted manner as the autumn progresses regarding the potential demerger. If you have any questions, please contact your L&T representative or customer service.