Lassila & Tikanoja Finalizes Strategic Split into Two Distinct Listed Entities

2025-12-31 companies

Helsinki, Wednesday, 31 December 2025.
Effective December 31, 2025, Lassila & Tikanoja has officially separated its operations. This strategic demerger creates Luotea Plc and a new independent Lassila & Tikanoja, the latter positioned to capitalize on a global circular economy market projected to exceed $4.5 trillion by 2030.

Execution of the Demerger

The registration of the partial demerger with the Finnish Trade Register today, December 31, 2025, marks the formal conclusion of a process initiated in August 2025 [1]. Under the terms of this corporate action, shareholders of the original Lassila & Tikanoja plc—now renamed Luotea Plc—receive one share in the newly formed Lassila & Tikanoja for every share they currently hold, executing a precise 1:1 distribution ratio [1]. The demerger does not involve any consideration for treasury shares held by the demerging company, ensuring a streamlined equity transfer to existing investors [1].

Market Debut and Trading Details

While the Helsinki Stock Exchange remains closed today for New Year’s Eve and tomorrow for New Year’s Day, the market is preparing for the dual listing to go live on Friday, January 2, 2026 [7][8]. The new Lassila & Tikanoja, which houses the environmental and circular economy operations, will commence trading under the ticker symbol “LASTIK” with the ISIN code FI4000592472 [1][3]. Simultaneously, the facility services business, now Luotea Plc, will continue to trade on the Nasdaq Helsinki official list under the ticker “LUOTEA” (ISIN: FI4000592464) [1]. This separation allows the market to value the distinct risk and return profiles of the two businesses independently.

Diverging Strategies for Diverging Markets

The strategic logic behind this split rests on decoupling high-growth potential from stable, cash-generative operations. The new Lassila & Tikanoja retains the circular economy portfolio, a sector identified as a “Star” with high growth expectations [4]. This entity is explicitly positioned to capture share in a global circular economy market that was valued at approximately $2.4 trillion in 2023 and is projected to expand to over $4.5 trillion by 2030 [4][6]. By isolating these assets, the company aims to fuel both organic and inorganic growth without the capital constraints of the broader conglomerate structure [4].

Financial Headwinds and Operational Restructuring

The demerger is finalized against a backdrop of contracting revenues for the combined entity. Full-year net sales for 2024 settled at EUR 770.7 million, a decline from EUR 802.1 million in 2023, representing a drop of -3.915 percent [6]. This downward trend persisted into the first quarter of 2025, where net sales fell by 5.1% year-over-year to EUR 175.5 million [6]. On the final trading day before the registration, Tuesday, December 30, Lassila & Tikanoja’s stock closed at 10.62 €, down 1.1% in a session where the broader Helsinki index rose 0.69% [2][7][8].

Sources

Corporate Restructuring Nasdaq Helsinki