GVH approves AutoWallis’s acquisition of majority ownership in Iniciál
The Hungarian Competition Authority (GVH) has approved the majority ownership of AutoWallis in Iniciál Autóház Kft., a significant company of the Western Hungarian region with a revenue of HUF 19.3 billion, involved in the sales and after-sales services of seven vehicle brands, according to a press release sent to the Budapest Business Journal.
The authority has approved AutoWallis Plc.’s acquisition of an additional 20% ownership in Iniciál.
Last year, AutoWallis established a cooperation agreement with Iniciál Group; as a first step, it acquired 40% of Iniciál in the beginning of July, and then in August an additional 20%, making AutoWallis 60% owner of the company.
Iniciál is involved in the sales and after-sales services of the following brands: Dacia, Nissan, Opel, Peugeot, Renault, Suzuki, and Toyota. The company currently operates in four cities: Győr, Mosonmagyaróvár, Sopron, and Szombathely, achieving a revenue of HUF 19.3 billion last year.
AutoWallis acquired the 20% Iniciál share in the second step as part of a contribution in kind of HUF 868 million, the press release says. based on the earlier decision of the corporation’s Board of Directors regarding the capital increase, the rate per share of the 10,049,568 AutoWallis shares to be newly issued in a private placement following the approval of GVH is HUF 86.4.
Regarding the shares received as contribution in kind, the sellers have secured a lock-up commitment: no shares may be sold until May 31, 2021; and in the following five years the shares may only be sold in limited quantity, on a fixed schedule, and quoted value, and in the predetermined manner.
AutoWallis says that Zsolt Taródy will continue to fulfill the position of managing director and professional manager of the Iniciál Group even after AutoWallisʼ acquisition of the majority ownership.
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