The Brazilian pulp group Suzano is taking over a 15 percent stake in Lenzing for 230 million euros and can acquire a further 15 percent stake by the end of 2028, the group announced on Wednesday. B&C is reducing its stake in Lenzing from 52.25 to 37.25 percent.
After the transaction is completed, B&C and Suzano will form a long-term Lenzing shareholder syndicate and B&C will exercise control in this syndicate. The listed company Suzano is the world’s largest pulp producer. The Brazilian group is paying EUR 39.70 per Lenzing share, which is higher than the current stock market price. The Lenzing share was last quoted at EUR 32.20, and the market capitalization was EUR 1.25 billion. Over 40 percent of the shares are in free float, with Goldman Sachs holding seven percent.
- also read: Ex-Lenzing boss becomes new CEO of Borealis
The B&C Group had already announced in mid-April that it would be looking for strategic partners for its core holdings in Lenzing, Semperit and AMAG and that it would accept a drop in its holdings below the 50 percent threshold. All three companies, especially AMAG and Lenzing, had to make investments “that cannot always be financed from the companies,” it said at the time. “With Suzano, B&C was able to gain a financially strong core shareholder for Lenzing who has extensive expertise and a reputation on the international financial markets,” said B&C Supervisory Board Chairman Wolfgang Hofer in a press release. It could make a “valuable contribution to improving the competitiveness of the Lenzing business model,” said Suzano CEO Walter Schalka.
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Source: Nachrichten
