Austrian cellulose fiber producer Lenzing AG launched a €300 million ($339m ) rights issue at a steep discount to strengthen its balance sheet and support the implementation of the “Grow Nonwovens, Reset Textiles” strategy announced in July 2026.
Lenzing is offering 34.76 million new shares at €8.65 each, a 42.5 percent discount to the theoretical ex-rights price based on Wednesday’s close, according to Reuters. Existing shareholders can acquire nine new shares for every 10 they own.
The fully underwritten deal is expected to raise about €300 million before costs. The syndicate comprising the B&C Group and Suzano S.A., Lenzing’s indirect majority shareholders, has committed to exercise all of its subscription rights. In addition, Oberbank AG has committed to exercise all of its subscription rights
The rights offering still needs approval from the Austrian Financial Market Authority.
In announcing the planned offering on August 25, Lenzing said “strengthening the equity base improves Lenzing AG’s balance sheet structure, increases its financial stability, and creates additional room for maneuvering.” At the same time, the equity raise supports the “Grow Nonwovens, Reset Textiles” program that calls for a pivot away from low-margin commodity products and focus on high-margin, sustainable cellulosic solutions.
As part of the restructuring, Lenzing in July said it would stop fiber production at its Heiligenkreuz plant in Austria and its Grimsby site in Britain. The Heiligenkreuz closure is now expected by the end of the first quarter next year while Grimsby production is scheduled to conclude by the end of 2027. The planned sale of its Purwakarta site in Indonesia is ongoing.
Lenzing is also targeting €120 million of savings against its 2025 cost base. It has separately secured up to €300 million of new financing and extended existing financing arrangements through 2030.
Lenzing, which is publicly held and trades on the Vienna Stock Exchange, over the medium term aims to increase earnings before interest, tax, depreciation and amortization (EBITDA) by €150 million, achieve an EBITDA margin of 20 percent-25 percent and reduce net debt to less than 2.5 times EBITDA.
In initially announcing plans for the offering, Georg Kasperkovitz, CEO of Lenzing, said, “The broad support from our shareholders, in particular our major shareholders, the B&C Group and Suzano, as well as Oberbank AG, demonstrates their confidence in our strategic realignment. The capital increase strengthens our financial structure and is a key building block for the successful implementation of our ‘Grow Nonwovens, Reset Textiles’ strategy. This will enable us to lay the foundation for sustainably increasing Lenzing AG’s profitability and creating long-term value.”
Image courtesy Lenzing
