AutoWallis, listed in the Premium category of the Budapest Stock Exchange, increased the capital of its subsidiary Wallis Motor Duna by close to HUF 400 million, in order to provide financing for the company’s growth plans. AutoWallis is planning for a robust growth in the next 10 years, aiming to become a major mobility service provider in the Central and Eastern European region.
The Board of Directors of AutoWallis Plc. increased the capital of its exclusively owned subsidiary Wallis Motor Duna Kft. by HUF 386 million. Wallis Motor Duna is one of the largest and most long-standing dealerships in Hungary involved in selling new BMW vehicles and used Premium Selection cars. In February, the company opened its new unit, Wallis Prémium Használtautó Center, which offers premium services and premium category used cars in an exclusive environment. The capital increase supports the strategy of AutoWallis announced in May. The main objective is to achieve a robust growth in the next 10 years via organic growth and acquisitions, with the aim of becoming a major mobility service provider of the Central and Eastern European region. The listed automotive company plans on an organic growth resulting in the quadrupling of the EBITDA (earnings before interest, tax, depreciation and amortization) and the doubling of its revenue, for the period until 2024. At the same time, the company is also planning for acquisitions, which could further improve its performance. Since spring, AutoWallis has been included in the BUX and BUMIX indices, as well as in certain FTSE indices, and the securities of the corporation appeared in the Premium category of the Budapest Stock Exchange on June 25.
The total amount of the capital increase carried out by AutoWallis Plc. (company registry number: 01-10-047350; VAT number: 23846085-2-41; corporate seat: 1055 Budapest, Honvéd utca 20.) on June 27, 2019, is HUF 386,000,000 in cash, which shall be provided by AutoWallis Plc. to Wallis Motor Duna Kft. (company registry number: 01-09-700391; VAT number: 12724400-2-43; corporate seat: 1097 Budapest, Könyves Kálmán krt. 5.) within 30 days. HUF 50,000,000 of the total amount of the capital increase shall be added to the share capital (thus raising it from the present HUF 158,730,000 to HUF 208,730,000), and the remaining HUF 336,000,000 will be used as capital reserves.