Enfo’s Nomination Committee proposes a change in Board composition
KPY Cooperative’s (‘KPY’) Executive Board has requested its subsidiary Enfo Oyj’s (‘Enfo’) Board of Directors to call an additional general meeting in order to change the composition of Enfo’s board. The current Enfo Chairperson Kaisa Olkkonen has asked to resign from her board positions at both Enfo and KPY.
For the general meeting, Enfo’s Nomination Committee proposes the appointment of new board members Tarja Tikkanen, who also acts as the chair of the executive board for Enfo’s majority shareholder KPY, as well as Pekka Loikkanen and Juha Yrjänheikki, who are also members of the KPY Executive Board. Furthermore, the nomination committee recommends Enfo’s board to appoint Tarja Tikkanen as the new chairperson of the board. KPY CEO Anssi Lehikoinen would remain as an observer to the board of directors. As a result, the term of office for the current Enfo Board of Directors would end at the additional general meeting, coinciding with the end of Olkkonen’s term on the KPY Executive Board.
As stated in Enfo’s and KPY’s press releases on 29 November 2022, Enfo is planning a partial demerger to separate its consulting operations into an independent limited liability company. KPY supports Enfo’s demerger plan and believes that it would create more opportunities for Enfo to increase the profitability of its business operations. KPY estimates that the planned partial demerger would pave the way for more precision in the beneficial development of consulting and data centre operations.
‘The demerger would be a significant event not only for Enfo but also for KPY as the owner of around 86 per cent of Enfo. If the demerger proceeds as planned, KPY intends to follow its ownership strategy and seek partnerships for the emerging companies both in business and ownership in order to promote lucrative growth in each. In this scenario, as a majority owner KPY wants to take more responsibility over Enfo’s business development, bolster our corporate governance and become more active in the Enfo Board of Directors. We also want to ensure that both Enfo’s growth strategy and KPY’s ownership strategy can be implemented effectively’, explains Chair of the KPY Executive Board Tarja Tikkanen.
She thanks the current Enfo board for a job well done. ‘The board led by Kaisa Olkkonen has been working in challenging times. Enfo has been tested, for example, by the COVID pandemic and a general talent shortage in Enfo’s line of business. The board has actively sought out solutions to adapt to the changing operational environment, and they have done a significant job in reshaping Enfo’s strategy together with the company’s management team’, Tikkanen continues.
Tikkanen emphasises that the change in board composition will not have an effect on Enfo personnel or client relations: ‘With these changes taking place on the board, there are currently no plans for new strategic shifts. The implementation of the existing strategy and Enfo’s operations will continue as planned. Should the demerger move forward, Enfo and the newly formed independent consulting enterprise can, of course, specify their own goals’.
Learn more about the demerger plan: https://www.enfogroup.com/press-releases/2022/enfo-announces-plans-demerge-two-independent-companies
