The Lenzing Group intends to acquire the remaining 30% of its Chinese subsidiary Lenzing (Nanjing) Fibers Co. Ltd. (LNF) from its state-owned joint-venture partner NCFC.
After closing of the transaction, the Lenzing Group will hold 100% of LNF. The underlying structured selling process was initiated by the JV partner in a state controlled bidding process, and the Lenzing Group received the Share Purchase Agreement draft.
The closing of transaction documents is expected for the end of October. The acquisition will have a negative impact on net profits of the Lenzing Group of approximately 21 million euro for the fiscal year 2018.
The purchase of shares supports Lenzing’s strategic growth as a producer of specialty fibers from the renewable raw material wood in China and worldwide, and paves the way to setting up further production lines for specialty fibers.
Lenzing hopes to convert LNF into a specialty fiber hub over time.