- Prachi Singh |
The Lenzing Group has announced through a statement that the company intends to acquire the remaining 30 percent 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 percent of LNF.
The company added that 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 company expects this acquisition will have a negative impact on net profit of the Lenzing Group of approximately 21 million euros for the fiscal year 2018.
The purchase of the shares, the company further said, supports Lenzing’s strategic growth as a producer of specialty fibers from the renewable raw material wood in China and worldwide. It paves the way to setting up further production lines for specialty fibers. Lenzing wants to convert LNF into a specialty fibers hub over time.