Lenzing to buy remaining 30 per cent of Chinese subsidiary
today Oct 25, 2018
The Austria-based Lenzing Group intends to acquire the remaining 30 per cent of its Chinese subsidiary Lenzing (Nanjing) Fibers (LNF) from its state-owned joint venture partner, NCFC. After closing of the transaction, the Lenzing Group will hold 100 per cent of LNF.
The underlying structured selling process was initiated by the joint venture partner in a state-controlled bidding process and the Lenzing Group received the share purchase agreement draft.
The closing of the transaction documents is expected by the end of October. The acquisition will have a negative impact on net profit of the Lenzing Group of approximately €21 million for the fiscal year 2018, Lenzing said in a press release.
The purchase of the shares supports Lenzing’s strategic growth as a producer of specialty fibres from the renewable raw material wood in China and worldwide. It paves the way to setting up further production lines for specialty fibres.
Lenzing wants to convert LNF into a specialty fibres hub over time.
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