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AutoWallis acquires majority ownership in Iniciál Autóház

2020-08-06

AutoWallis Plc. acquires an additional 20 percent share in Iniciál Autóház Kft., increasing its ownership to 60 percent in this significant company of the Western Hungarian region involved in the sales and after-sales services of seven vehicle brands.

AutoWallis Plc. will acquire an additional 20 percent ownership in Iniciál Autóház Kft. (Iniciál), this dynamically growing company with over 115 employees, making the corporation listed in the Premium category of the Budapest Stock Exchange the 60 percent owner of Iniciál, upon receiving approval from the Hungarian Competition Authority. Having established a cooperation agreement last year with the Iniciál Group, known for its 25 years of experience in the field of vehicle sales, AutoWallis increased its share now after acquiring 40 percent of Iniciál in the beginning of July, as part of the agreement. Iniciál is involved in the sales and after-sales services of seven vehicle brands (Dacia, Nissan, Opel, Peugeot, Renault, Suzuki and Toyota) in four sites (Győr, Mosonmagyaróvár, Sopron, and Szombathely), and the company’s revenue was HUF 19.3 billion last year. AutoWallis acquires the 20 percent share as part of the contribution in kind of HUF 868 million decided today by the Board of Directors. Based on the earlier authorization of the corporation’s shareholders, the rate per share of the 10,049,568 AutoWallis shares to be newly issued in this private placement is the average stock exchange rate of the previous 30 days, that 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 5 years the shares may only be sold in limited quantity, on a fixed schedule and quoted value, and in the predetermined manner. Zsolt Taródy, the seller’s representative, talked about that their sole financial advisor during the transaction was KPMG.

Having developed a long-term, stable cooperation with AutoWallis over recent months, he continues to fulfil the position of managing director and professional manager of the Iniciál Group even after the acquisition of the majority ownership. Regarding Iniciál Autóház, the founder Zsolt Taródy explained that after joining the AutoWallis group, they would continue on the road started 25 years ago, as it has led Iniciál to become a significant actor in its region, compliant in all aspects with any importer expectations. The transaction will add further fleet brands of significant position to the brands already sold by members of the AutoWallis group, which is in line with the strategy announced last year, aiming to make the company a major mobility provider for the Central and Eastern European region by 2029. Gábor Ormosy, CEO of AutoWallis, pointed out that the acquisition supported another important strategic objective of AutoWallis, in addition to increasing the number of brands sold, as the number of the group’s sales points in the Hungarian market also grows, in addition to the international expansion announced in recent months. He added that with the growing number of sales and after-sales servicing points, AutoWallis may see an increase in the volume of the more profitable services as well within its revenue.

For further information on the Iniciál Group: www.inicial.hu