Capital Increase

Lenzing Needs Money for Restructuring

The owners are on board with this move.(Bild: Kerschbaummayr Werner)

The fiber company Lenzing needs money for its strategic realignment—and is turning to the capital market to raise it.

The Upper Austrian company aims to raise 300 million euros through a cash capital increase with subscription rights. The subscription price was set at 8.65 euros per share, Lenzing announced on Thursday. This represents a 42.5 percent discount to the theoretical price without subscription rights, based on Wednesday’s closing price. Lenzing’s owners intend to participate in the capital increase.

The major shareholders—consisting of the B&C Group and the Brazilian company Suzano S.A.—have committed to exercising all their subscription rights. In addition, Oberbank AG has also committed to exercising all of its subscription rights, according to the press release. The subscription ratio is ten to nine. This means that shareholders or holders of subscription rights are entitled to subscribe for nine new shares for every ten existing shares or the corresponding number of subscription rights. The subscription period is expected to begin on October 6, 2026, and end on October 20, 2026.

Fiber Production in Burgenland to Be Discontinued
Lenzing is pursuing a new strategy to expand its nonwovens business and focus on premium market segments such as Tencel in its textile business. The pulp and biorefinery businesses are also to be strengthened. At the same time, the Group is withdrawing from the business of standard fibers for textile applications. As part of the group’s strategic realignment—following several difficult years—fiber production in Burgenland will therefore be discontinued by the end of 2026. In England, production will wind down in 2027. As a result, approximately 2,000 jobs will be lost at Lenzing worldwide.