Over the years, there has been much speculation about whether L&T could become an acquisition target. Surely several PE investors have evaluated this and made inquiries over the years.
L&T’s largest owner is still the Evald and Hilda Nissi Foundation (9.15% of shares/votes). The Evald and Hilda Nissi Foundation was established in 1964, and its operations are based on the assets bequeathed by the Nissis for the foundation. Evald Nissi made his life’s work as a member of the Board of Directors of Lassila & Tikanoja Oyj.
Unless this particular foundation wants to reinvest its holdings, I find it difficult to see a situation where L&T would become the target of a takeover bid. History and steady dividends certainly carry weight in the balance.
Addition: I personally believe that L&T would be more valuable outside the stock exchange as part of a larger entity or if it could be successfully developed into a Nordic consolidator. On the stock exchange, the valuation is in the bargain bin.