NN Group Slashes Lenzing Stake as Fibre Maker Pushes €300 Million Rescue Financing

NN Group lowered its Lenzing voting stake to 2.54% from 6.27% as the fibre maker runs a EUR 300m rights issue and restructuring.

The Dutch financial group NN Group has cut its voting stake in Austrian fibre producer Lenzing to 2.54%, down from 6.27% previously, according to a voting rights notification published Tuesday. The reporting threshold was crossed on 2 October.

NN Group now holds 981,965 indirect voting rights in the Upper Austrian company, against a total of 38,618,180 voting rights. No financial instruments or other rights were disclosed as of the reporting date. Within the group's holdings, Nationale-Nederlanden Levensverzekering Maatschappij accounts for 2.31%, Nationale-Nederlanden Schadeverzekering Maatschappij for 0.20% and NN Re (Netherlands) for 0.03%.

The retreat by the major investor lands squarely in the middle of a sweeping balance-sheet and operational overhaul at Lenzing. The company is running a cash capital increase with subscription rights aimed at raising gross proceeds of roughly EUR 300 million, issuing 34,756,362 new shares at a subscription price of EUR 8.65 apiece. Management intends to use the money to shore up the equity base and bankroll its strategy programme, branded "Grow Nonwovens, Reset Textiles."

Core shareholders commit to the cash call

The move has the backing of Lenzing's anchor investors. The syndicate of B&C Group and Suzano, which indirectly represents 52.25% of share capital, has committed to subscribing for 18,159,291 new shares. Once the offer closes, B&C is expected to hold around 39.64% indirectly, with Suzano accounting for roughly 12.60%. Oberbank, which holds a 3.87% stake, has also pledged to take up 1,344,168 shares. The subscription period runs until 20 October 2026, with delivery and trading of the new shares expected from 23 October 2026.

Alongside the refinancing, Lenzing is pressing ahead with restructuring its operations. The company is targeting savings of EUR 120 million compared with 2025. Under that plan, production at the Heiligenkreuz site is to end in the first quarter of 2027, followed by the Grimsby plant in the UK at the end of 2027. A sale process is also under way for the Indonesian activities in Purwakarta.

Over the medium term, Lenzing is aiming for an EBITDA improvement of EUR 150 million and an EBITDA margin in a range of 20% to 25%. At the same time, the net debt ratio is to fall back below 2.5x EBITDA.

Berenberg steps back as market scepticism builds

Sentiment on the equity market remains subdued. Analyst Sebastian Bray of Berenberg downgraded the stock from "Buy" to "Hold" on Friday, cutting his price target to EUR 17.00 from EUR 29.50. The brokerage cited several drags in the market environment: higher cotton and viscose prices have not fed through to operating results as expected, while persistent raw material costs, rising interest rates and caution over partner Suzano's commitment have added to the pressure. Austrian news agency APA reported on Friday that the shares saw sharp markdowns in trading after the subscription right was stripped out.

The muted mood is reflected in the valuation. In pre-market trading the stock sits at EUR 13.72, close to its 52-week low of EUR 13.14, giving the company a market capitalisation of EUR 720.51 million. During Tuesday's session the shares slipped 1.5% to EUR 13.58.

Investors will look to Lenzing's next official financial reports for a clearer read on real progress. The company has scheduled publication of its third-quarter 2026 figures for 5 November 2026 — an interim report expected to shed light on how earnings power and the cost base are actually developing under current industry conditions.