AutoWallis Group announced that it agreed to acquire a 40% stake in Iniciál Autóház Ltd., a company with 25 years of experience in car trade engaged in selling and servicing seven car brands.
AutoWallis will acquire this minority share from Iniciál’s financial investor through a HUF 1.16 billion capital increase as contribution in-kind, approved by the board of directors. 13.589.503 AutoWallis shares will be issued in a private placement for a share price of HUF 85.36 calculated in accordance with the average share price of the last 30 days, based on the mandate formerly granted by the Company’s shareholders. AutoWallis agreed to purchase 8.589.503 new shares from this contribution in-kind on a HUF 93 price per share.
Regarding the other shares received for the contribution in-kind, Iniciál Group’s former financial investor assumed a lock-up period until May 31, 2021, declaring that these shares will be regarded and managed as a long-term investment.
According to a press release sent to the Budapest Business Journal, AutoWallis also plans to acquire a further 20% business share in Iniciál from the founder’s family, thus capturing a total 60% share in the Company, provided that the Hungarian Competition Authority approves the acquisition following the current transaction.
Zsolt Taródy, the founder of the company will remain its managing director. Iniciál Autóház, which currently employs more than 115 people reported a HUF 19.3 billion revenue last year, whereas AutoWallis had HUF 75.3 bln.
Taródy explained that the group has been successfully expanded and become a dominant player in its region fully in line with the importers’ expectations, and could increase its business turnover above the sector’s average rate in the past two years. He added that cooperation between AutoWallis and Iniciál might open new opportunities for the group he had founded.
Referring to the transaction Gábor Ormosy, AutoWallis CEO pointed out that as a result of this step the premium brands sold by the group members may be extended with new fleet brands with a dominant position.