Hungarian IT company 4iG agrees to sell 25.1% stake

Germany's Rheinmetall AG agreed to acquire a 25.1% stake in Hungarian IT company 4iG Nyrt. through a share purchase and capital increase, according to the companies' Nov. 25 announcement.

The transaction, which will be done through KZF Vagyonkezelő Kft., the investment company of 4iG President and CEO Gellért Jászai, will see Rheinmetall becoming the largest strategic investor in 4iG.

Rheinmetall will also take part in the private capital increase planned for about 120 billion Hungarian forints. The capital increase will be done by issuing 4iG shares at a share price of 670 forints.

The transaction would not significantly change Jászai's indirect ownership and control over 4iG PLC.

After the completion of the stake acquisition, Rheinmetall and 4iG will also establish a joint IT company. Rheinmetall and 4iG will own 51% and 49%, respectively, of the joint venture.

Rheinmetall's proposed transaction is in line with its plan to further its position as a systems supplier for security technology in central and Eastern Europe.

The transaction is subject to the approval of Hungary's Ministry of Interior, planned by the end of January 2022.

As of Nov. 25, US$1 was equivalent to 325.91 Hungarian forints.