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Demerger 2025

L&T will demerged into two separate publicly listed companies by the decision of the Extraordinary General Meeting held on December 4, 2025. One of the new companies will focus on the circular economy and the other on property services. The demerger will be executed on December 31, 2025.

 

Prospectus published, download below!

Lassila & Tikanoja's demerger

The company’s Board of Directors has proposed, and the Extraordinary General Meeting has approved, that the Circular Economy business will be separated into a new listed company, which will be named Lassila & Tikanoja Plc.

The current company will change its name to Luotea Plc and will focus on the Property Services business area.

Demerger timeline

1

Board’s Decision to Initiate Demerger Planning

On 13 December 2024, the board of directors of Lassila & Tikanoja plc decided to initiate the planning of the possible separation of its circular economy businesses Environmental and Industrial Services and facility services businesses into two independent listed companies. 

2

Approval of the Demerger Plan

On 7 August 2025, the board of directors of Lassila & Tikanoja plc approved the demerger plan to separate the Circular Economy businesses into a new listed company, which will be named Lassila & Tikanoja plc.  In connection with the demerger, the company would retain its Facility Services business area, and the Company is intended to be re-named Luotea plc. 

3

Listing Prospectus Publication

Lassila & Tikanoja published the demerger and listing prospectus in November 2025, prior to the General Meeting deciding on the demerger. The demerger and listing prospectus contains more detailed information about the demerger and the listing of the new circular economy company.
4

Capital Markets Day

Lassila & Tikanoja plc arranged a Capital Markets Day on 26 November 2025.

6

Completion Date of the Demerger

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

7

Trading in the Shares

Trading in the shares of the new Lassila & Tikanoja on Nasdaq Helsinki is expected to commence on or about 2 January 2026, or as soon as reasonably possible thereafter. 

Frequently asked questions

Why are the businesses being separated?

According to the assessment of the Board of Directors of the Company, separating the Circular Economy and Facility Service business areas increases shareholder value by enabling each business area to more effectively execute its own focused strategies and growth opportunities.

According to the assessment of the Board of Directors of the Company, the Demerger is expected to enhance the performance of the New Lassila & Tikanoja’s and Luotea’s businesses through improved agility, independent decision-making and stronger management focus. As two separate entities, 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 of Directors believes that demerging 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 company structures, increase transparency and clarify responsibilities.

Which business operations are planned to be demerged?

The company focusing on circular economy business, named 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 on 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.

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

The planned completion date of the demerger is 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.

What executive appointments have been made since the planning began?

Lassila & Tikanoja plc announced on 9 June 2025 that the Board of Directors of the company has proposed that Eero Hautaniemi be appointed as President and CEO of the independent the new Lassila & Tikanoja and that Joni Sorsanen be appointed as CFO of the independent new Lassila & Tikanoja, should the demerger be completed. 

The company announced also on 9 June 2025 that the Board of Directors of the company has proposed that Antti Niitynpää be appointed President and CEO of Luotea and that Mika Stirkkinen be appointed CFO of Luotea.

How will the shares be distributed?

The shareholders of the company will receive as demerger consideration one new share of the New Lassila & Tikanoja for each share owned in the company, that is, the demerger consideration will be issued to the shareholders of the company in proportion to their existing shareholding with a ratio of 1:1. No action is required from the shareholders to receive the demerger consideration.

The company’s shareholders will retain their shareholdings in Luotea.

Can the same members be appointed to the boards of both companies in the future?

A majority of the board members must be independent and autonomous. The proposed boards do not include any overlapping members.

Do the largest shareholders support the planned demerger?

Certain major shareholders of the company, including Evald and Hilda Nissi Foundation, Nordea Investment Management AB (as investment manager on behalf of Nordea Småbolagsfond Norden, Nordea 1 – Nordic Small Cap Fund and Nordea Invest Nordic Small Cap Fund), Juhani Maijala, Heikki Bergholm,  Ilmarinen Mutual Pension Insurance Company, Varma Mutual Pension Insurance Company, Mikko Maijala and Elo Mutual Pension Insurance Company, holding in the aggregate approximately 27.59 per cent of the shares and votes in the company, have, subject to certain customary conditions, irrevocably undertaken to attend the company’s EGM and vote in favour of the demerger.

With what names will the companies continue?

According to the demerger plan, the company is demerged in such a way that the Circular Economy business area is transferred to a new established, independent listed company in connection with the demerger. The new company is named Lassila & Tikanoja Plc.

In connection with the demerger, the company retains its Facility Services business area, and the company is re-named Luotea plc.