Minor shareholders seek board replacement at Leppäkoski Group in Finland

Minor shareholders of the Pirkanmaa-based electricity company Leppäkoski Group are seeking to replace the entire board of directors. They argue that the current leadership has taken several steps indicating a desire to gain control over the shareholders’ stakes, either partially or fully. “They have themselves noted this in the founding documents of the Sheet Holding company,” said minority shareholder Esa Talonen.

Nearly three hundred minor shareholders plan to represent their views at an extraordinary general meeting today, either by proxy or in person, calling for a complete overhaul of the board. The meeting was first reported by Aamulehti.

Shareholders are also concerned about the board members’ connections to Alfors, a company that owns over one-third of Leppäkoski Group. Reports suggest that holding companies associated with Alfors include members of Leppäkoski’s board and management, raising fears among minority shareholders that the company could be “captured” and potentially sold or divided by larger entities.

Leppäkoski Group’s CEO, Juha Koskinen, views the notion of taking over minority stakes as unusual. He emphasized that shareholders are free to decide whether to sell or buy their shares. Regarding fears of a company takeover, Koskinen noted that indirect ownership by board and management members is only a few percent. In public companies, it is common for the management to own a small share, aligning the interests of all parties.

Changing the board is complex, requiring over 50% of votes, which might not be achievable by minority shareholders alone. Talonen hopes larger stakeholders, such as the municipalities of Ikaalinen and Parkano, will support the initiative. The stance of regional network companies on this matter remains uncertain and could impact the outcome of the meeting, where the only agenda item is the board’s replacement.