Lenzing to issue new shares in 300 million euro capital increase

Austrian fiber manufacturer Lenzing has announced that its Extraordinary General Meeting (EGM), held on August 25, 2026, approved an increase in share capital while preserving the statutory subscription rights of existing shareholders. The measure is designed to strengthen the balance sheet structure of the company and finance the execution of its strategic transformation strategy, titled 'Grow Nonwovens, Reset Textiles'.

Under the approved resolution, the company will issue new no-par value bearer shares in exchange for cash contributions, targeting a transaction volume of approximately 300 million euros (349.3 million dollars). The capital increase is scheduled to be completed by February 25, 2027 at the latest. The final terms of the rights issue, including the offering price, will be determined by the management board with approval from the supervisory board.

Lenzing chief executive officer, Georg Kasperkovitz, stated: “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”.

The capital injection forms part of a broader financial package intended to increase financial stability and provide operational flexibility as the producer adjusts its global manufacturing footprint. First unveiled in July 2026, the company's realigned strategy shifts operational focus toward expanding its nonwovens division while reducing exposure to standard, lower-margin textile fibers.

Shareholders at the EGM also voted to elect Martin Seiter to the supervisory board. His appointment is effective from the conclusion of the EGM until the end of the Annual General Meeting that will vote on the discharge of liability for the 2028 financial year. Seiter replaces Franz Gasselsberger, who resigned from the supervisory board at his own request upon the conclusion of the meeting.

Following the election, the supervisory board of Lenzing continues to comprise 10 shareholder-elected members and five members delegated by the works council, with Patrick Lackenbucher remaining as chairman.