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Wallis Asset Management launches ESOP scheme

The main owner of listed holding AutoWallis, Wallis Asset Management, has launched an employee stock ownership plan (ESOP) tied to reaching certain performance targets, supporting strategic objectives, for which it is providing the necessary 7.3% share portfolio free of charge.

Initially, 25 managers of AutoWallis and its subsidiaries will participate in the program, and will receive an actual share upon meeting the profitability targets set within the program, according to a press release sent to the Budapest Business Journal.

Earlier this year, AutoWallis presented its strategy for the years until 2024 and its vision up until 2029. It calculates on robust growth for the next decade, while its objective is to become a major mobility service provider in the CEE region. The company counts on organic growth until 2024, with the quadrupling of EBITDA, doubling of revenue, and even more significant growth considering possible acquisitions, which could further improve performance.

Wallis Asset Management indicated earlier that it wishes to promote this strategy in several ways, with the aim of considerably increasing shareholder value. To this end, the company has decided to hand over a share portfolio worth more than HUF 2.2 billion to the AutoWallis ESOP program free of charge, aiming to provide an incentive for employees without burdening other shareholders in any way. The business has also committed itself to return the dividends eventually to be paid by AutoWallis to the corporation, as far as is necessary for financing subsequent growth and acquisitions.

AutoWallis CEO Gábor Ormosy said the program will be operated by a dedicated ESOP organization independent from the company. Participants may only acquire shares if predetermined targets are met, and may only sell these under strict rules and following a set schedule, but no sooner than two or three years later, when the programs expire. The CEO added that the ESOP is an effective asset for supporting realization of the published strategy, and represents further motivation for reaching the set goals.

According to its description on the website of the Budapest Stock Exchange (BÉT), where it is listed in the Equities Prime category, "the main objective of AutoWallis is to operate as an asset management company that represents traditional, conservative business policy through the continuous expansion of its portfolio focusing on automotive investments."

The four member companies of the AutoWallis Group are engaged in the retail and wholesale of vehicles, parts, and accessories, in service providing, as well as in short and long-term vehicle rentals in Hungary, and in the Central and Southeast European region, the description adds.