Austria's Lenzing successfully completes capital increase

At the end of the subscription period, 12,009,820 new shares were subscribed for in the rights offering through the exercise of subscription rights, including 6,305,315 new shares subscribed for by B&C Group. The remaining 58,360 new shares for which no subscription rights were exercised during the rights offering have been successfully placed with institutional investors in a private placement at a placement price of €46.25 per new share, which is the same as the closing price on the Vienna Stock Exchange on July 5, 2023, the company said in a press release.

“We have been able to hold very constructive and promising discussions with numerous investors during our roadshow in recent weeks. We have received a wealth of positive feedback from investors, as the market clearly recognises the strong position we hold in addressing the megatrends of sustainability and the circular economy. Furthermore, it was clearly communicated to us by investors that this capital increase was interpreted as a measure with foresight to strengthen our equity position. Based on this backing, we are now ready to work even harder to successfully implement our strategy,” said Stephan Sielaff, chief executive officer of Lenzing.

“We consider the result of the capital increase to be a success and the clear approval of the shareholders as a mandate for our future actions. Timing has played a crucial role in this move. Instead of speculating about the future, we have resolutely seized the opportunity to strengthen the Lenzing Group and prepare for the many tasks that lie ahead,” Nico Reiner, CFO of the Lenzing Group, added.

The final gross proceeds amount to approximately €400.2 million and will be used to strengthen the company’s balance sheet and liquidity position and provide additional flexibility with respect to the company’s financing strategy, as well as support its strategic roadmap.

Settlement and delivery and trading in the prime market segment of the Vienna Stock Exchange of all new shares under the existing ISIN AT0000644505 is expected on July 10, 2023, conditional upon the registration of the capital increase with the companies register.

The company as well as Lenzing’s majority shareholder, B&C KB Holding GmbH and B&C Ares Holding GmbH, have agreed to a lock-up period starting on the date of the placement agreement and expiring six months after the first day of trading of the new shares, subject to certain exceptions.

Fibre2Fashion News Desk (RR)