Generali Alapkezelő increases share in AutoWallis to over 3.5%
Generali Alapkezelő has further increased its share in AutoWallis following a record high first-quarter result, having assessed that the listed car company is implementing its previously announced strategy faster than expected, according to a press release sent to the Budapest Business Journal.
The asset management company now owns more than 3.5% of AutoWallis through the acquisition of nearly 8 million of the company’s own shares.
AutoWallis Plc. sold its own shares in a fixed deal on the stock exchange, thus reducing the treasury share of the company, listed in the Premium category of the Budapest Stock Exchange, to zero.
The transaction took place at a price of HUF 93, which is 12% higher than the HUF 83 of last December’s capital increase, during which Generali Alapkezelő had already purchased AutoWallis shares alongside two other institutional investors.
Regarding the transaction, Gábor Székely, chief investment officer of AutoWallis, said that it served the company’s announced strategy in several ways: on the one hand, it increases the free float of the shares, and on the other hand, the proceeds will be used to finance the company’s previously announced strategic goals.
The transaction will also increase the value of the company’s equity, enhancing AutoWallis’ opportunities to issue new bonds as planned within the Funding for Growth Scheme framework, according to the press release.
Regarding this share increase of the asset management company, Róbert Pallag, investment manager of Generali Alapkezelő Zrt., said that they were confident in the further significant value creation of the AutoWallis Group, as the implementation of the previously announced strategy was progressing faster than originally indicated, which was evidenced by the company's record high first quarter results this year, and they viewed their share as a long-term investment.
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