L&T plc has demerged into two separate listed companies

According to the Lassila & Tikanoja Oyj Board of Directors, the demerger of the circular economy and property services businesses increases 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 clarifies management, simplifies the structures of the companies, and increases transparency and clarifies responsibilities.

The company focusing on circular economy business, retaining the name Lassila & Tikanoja Plc, encompasses 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, named Luotea Plc, includes 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.

Services will continue as usual. 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.

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

The company's facility services business remains with the company in the demerger, and the company is renamed Luotea Oyj in connection with the demerger.

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

The Extraordinary General Meeting (“EGM”) of the company, approved the demerger on 4 December 2025.

The completion date of the demerger was 31 December 2025.

The demerger and listing prospectus, which was published by the company in November 2025 before the EGM, contains more detailed information on the Demerger and the listing of the new circular economy company.