Lenzing - Leading Fiber Innovation

Wednesday, 15. June 2011

“We see this success as convincing proof of trust in our company, our strategy and our execution strength. We will continue to consistently execute our ambitious growth program and seize the opportunities which the cellulose fiber market offers”, Lenzing CEO Peter Untersperger commented following allocation. Lenzing intends to increase its annual production capacities for viscose, modal and Tencel fibers from currently 720,000 tons to approx. 1.2 million tons by the end 2015. The expected investments amount to approx. € 1.5 billion. Lenzing will invest into the expansion of its standard viscose capacities focused on Asia and into new capacities for its specialty fibers modal and Tencel with focus on Austria and the United States, as well as into the expansion of its pulp production capacities.

825,000 new shares were offered in a capital increase as well as 5,351,379 existing shares from the Company’s core and majority shareholder B & C Group. In case of full exercise of the greenshoe option, this number may increase to 5,900,000 shares. Lenzing will generate net proceeds of approx. € 70 million from the capital increase. As a result of the capital increase and the sale of existing shares, Lenzing’s free float will increase from previously approx. 9.5% to approx. 32.4% (34.5% in case of a full exercise of the greenshoe option). This is expected to increase the attractiveness of Lenzing’s shares to international investors and improve Lenzing’s long-term access to the capital markets. Furthermore, Lenzing aims to be included in the main index of the Vienna Stock Exchange, the ATX, as soon as possible.

Morgan Stanley was Sole Global Coordinator of the transaction. Morgan Stanley, Deutsche Bank and UniCredit Bank Austria were Joint Bookrunners. Raiffeisen Centrobank and Raiffeisenlandesbank Oberösterreich acted as Co-Lead Managers.

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For additional information please contact:
Angelika Guldt
Head of Corporate Communications
Phone: +43 (0) 7672 701-2713
E-Mail: a.guldt@lenzing.com

 

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This release is not an offer of securities for sale or a solicitation of an offer to purchase any securities of Lenzing AG. The offering has been completed and the shares offered in this offering have already been placed. These materials are not for distribution, directly or indirectly, in or into the United States (including its territories and possessions, any State of the United States and the District of Columbia). These materials do not constitute or form a part of any offer or solicitation to purchase or subscribe for securities in the United States of America. The shares of Lenzing AG mentioned herein may not be offered or sold in the United States absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended. There will be no public offering of securities in the United States or anywhere outside of Austria. This press release is directed only at persons (i) who are outside the United Kingdom or (ii) who have professional experience in matters relating to investments falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended) (the “Order”) or (iii) who fall within Article 49(2)(a) to (d) (“high net worth companies, unincorporated associations etc.”) of the Order (all such persons together being referred to as “Relevant Persons”). Any person who is not a Relevant Person must not act or rely on this communication or any of its contents. Any investment or investment activity to which this communication relates is available only to Relevant Persons and will be engaged in only with Relevant Persons.