AutoWallis launched its growth strategy last year, with plans to double its 2018 revenue (HUF 65.5 billion) by 2024, and to become a major mobility service provider of the Central and Eastern European region by 2029. Despite the COVID-19 epidemic, the realization of the strategy is on track; the company listed in the Premium category of the Budapest Stock Exchange has already announced six major business developments and acquisitions this year (these include the acquisition of the largest Hungarian Opel and KIA dealership; beginning the distribution of Jaguar and Land Rover models in Hungary; the takeover of the largest Slovenian BMW dealership; equity investment in Iniciál Autóház, a major company of the Western Hungarian region involved in the sales and servicing of seven significant vehicle brands, as well as the acquisition of the importer rights of Opel in Bosnia and Herzegovina, Croatia, Slovenia and Hungary), which have been financed primarily via funding already at its disposal and a capital increase based on earlier authorization. 

Gábor Ormosy, CEO of AutoWallis, said that they were looking for further growth opportunities beyond the already announced transactions even in the current, volatile economic environment, because they believed that the economic downturn caused by the coronavirus epidemic has created new investment, acquisition, market acquisition and business development opportunities for AutoWallis, which they wanted to utilize to the fullest extent, given that – in accordance with the strategy – they had managed to form a consolidation platform in AutoWallis that would bring a competitive edge and stability for all joining entities. They wish to finance these transactions partly by issuing new shares, and so they recommend that the shareholders of the corporation consent to the possibility of a capital increase from the current HUF 3.7 billion to a maximum of HUF 6 billion. This authorization would also provide the possibility for AutoWallis to involve funding from institutional and private investors of the capital market for the first time, under suitable capital market conditions.

The agenda of the general meeting includes, in addition to technical amendments to the statutes, a new mandate for the future purchase and selling of treasury shares and equity bonds, and even of convertible bonds. These aim to make it possible for the company to buy treasury shares and use them, among other things, for financing acquisitions or even for launching a new Employee Share Ownership Program (ESOP).