Merger of YIT and Lemminkäinen
YIT and Lemminkäinen MERGED on February 1, 2018
The Boards of Directors of YIT Corporation and Lemminkäinen Corporation decided on January 31, 2018, to complete the merger of Lemminkäinen and YIT in accordance with the merger plan signed on June 19, 2017. The merger has been entered into the Trade Register and took effect on February 1, 2018.
The combination will create a financially strong company with urban development as the engine for growth and profitability. The companies’ business areas will complement and balance each other and decrease sensitivity to economic cycles.
The combination is expected to create significant value for the shareholders of the combined company through decreased sensitivity to economic cycles and improved competitiveness providing a strong platform for growth.
The total synergies are expected to be approximately EUR 40 million annually, and they are expected to materialise in full by the end of 2020.
The combination was implemented as a statutory absorption merger whereby Lemminkäinen will be merged into YIT.
The Extraordinary General Meetings (each, an “EGM”) of YIT and Lemminkäinen held on September 12, 2017 approved the merger. The Finnish Competition and Consumer Authority (the "FCCA") announced on January 16, 2018 that it will approve the merger between YIT and Lemminkäinen as such. The FCCA has on January 26, 2018, given its final approval decision for the merger.
The combined company has obtained necessary commitments for the financing of the completion of the merger.
The preliminary long-term financial targets of the combined company will be return on capital employed (ROCE) of more than 12 percent, equity ratio above 40 percent, positive cash flow after dividends as well as annually growing dividend per share.
Stock Exchange Releases and other material
June 19, 2017: Announcement
Stock Exchange release, June 19, 2017
August 25, 2017: Publication of merger prospectus
Stock Exchange release, August 24, 2017
Stock Exchange release, September 7, 2017
September 12, 2017: YIT and Lemminkäinen EGMs
Stock Exchange release, July 27, 2017
Stock Exchange releases, September 12, 2017
OTHER STOCK EXCHANGE RELEASES
Stock Exchange release, September 28, 2017
Stock Exchange release, October 9, 2017
Stock Exchange Release, December 11, 2017
Stock Exchange Release, December 13, 2017
Stock Exchange Release, January 16, 2018
Stock Exchange Release, January 26, 2018
Stock Exchange Release, January 31, 2018
YIT Corporation Stock exchange releases February 1, 2018