Lenzing AG corporate restructuring and capital increase

Lenzing AG announced a strategic realignment involving a 300 million euro capital increase through the issuance of 34.76 million new shares. The company intends to use these funds to expand its nonwovens, premium textile, pulp, and biorefinery businesses while withdrawing from the standard fiber market. This restructuring includes plans to cut approximately 2,000 jobs worldwide.

Major shareholders, including B&C Group, Suzano S.A., and Oberbank AG, have committed to exercising their subscription rights. Following the announcement, the company’s stock experienced significant volatility, dropping as much as 14.6 percent. In subsequent disclosures, Lenzing AG reported that Christian Skilich, a member of the managing body, acquired 1,710 shares at a price of 8.65 EUR per unit on October 23, 2026.

Lenzing has since successfully completed a capital increase, raising a gross amount of €301.2 million through the issuance of 34,756,362 new shares at €8.65 each. Approximately 99 percent of the offered shares were subscribed via preferential subscription rights by existing shareholders, while the remainder were placed into the market by consortium banks. These funds are intended to support the ‘Grow Nonwovens, Reset Textiles’ strategy and strengthen the company’s capital structure.

Regarding operations, the company has postponed the closure of its Heiligenkreuz plant, with production now expected to continue until the end of the first quarter of 2027 to facilitate the transfer of manufacturing activities. Despite the successful financing, Berenberg downgraded its rating for Lenzing from ‘Buy’ to ‘Hold’, lowering the price target from €29.50 to €17.00. Lenzing is targeting a mid-term EBITDA increase of €150 million and an EBITDA margin of 20.00 to 25.00 percent.