PRESS RELEASE
4iG and Rheinmetall enter into strategic partnership
The investment company of Gellért Jászai, KZF Vagyonkezelő Ltd., 4iG Plc and Rheinmetall AG have entered into a definitive agreement. The German global company will acquire a 25.12* percent stake in 4iG Plc through a share purchase and capital increase, making it the largest international investor in the Hungarian IT and telecommunications group. The closing of the multi-phase transaction is conditional on the approval of the new articles of charter and supervisory board by the general meeting of 4iG, and the consent of the Ministry of Interior to the acquisition of Rheinmetall AG under the law on the acquisition of foreign companies.
The Company has announced on the website of the Budapest Stock Exchange that 4iG Plc and Rheinmetall AG are entering into a partnership after the companies involved in the transaction reached a definitive agreement on the terms of the acquisition. The agreement was preceded by the successful due diligence of 4iG Plc. With signing of the agreement, 4iG will become the preferred digitalisation and IT partner of the Düsseldorf-based global company, which is also a major player in the international defence and automotive industries.
According to the agreement, Rheinmetall AG will purchase 4iG shares from KZF Vagyonkezelő Ltd. in an OTC transaction. The German company will also participate in a multi-phase private equity offering worth a total of HUF 125 billion, in which, in line with the preliminary announcement of the transaction last November, iG COM Private Equity Fund, Gellért Jászai's interest, and a fund managed by Alpac Capital will participate alongside Rheinmetall. The capital increase by share premium will be carried out by placing 4iG shares with an issue value of HUF 670. The main steps of the transaction are:
- iG COM Private Equity Fund, Gellért Jászai’s
interest, is to raise HUF 78 billion in 4iG Plc, undertaking a 12-month lock-up
on the equity stake to be acquire through the capital increase;
- 4iG convenes a general meeting of shareholders
to approve the company’s new articles of association and a new supervisory
board, with Rheinmetall appointing a new member to the supervisory board;
- Following the decision of the General Meeting of
Shareholders to support the capital increase, Rheinmetall will purchase 24.9
million shares from Gellért Jászai’s investment company, KZF Vagyonkezelő Ltd.,
in an OTC transaction and will raise HUF 33.65 billion in 4iG Plc., by
undertaking a 24-month lock-up on the share package to be acquired through the
capital increase and share purchase;
- The Alpac Capital fund is raising HUF 13.24
billion in 4iG Plc.
As a result of selling the share package, and the capital increase, Gellért Jászai’s indirect ownership in 4iG Plc will be
reduced from 56.85 percent to 50.22* percent, so his influence over the company will not change significantly. Rheinmetall’s
stake in the IT and telecommunications company will be 25.12* percent.
“The agreement with Rheinmetall opens up new horizons in 4iG’s growth strategy. The strategic investment by the German company and the institutional fundraising announced today will further increase the capital strength of our group, providing a solid basis for further domestic and international expansion. The partnership will also open up new opportunities for cooperation with Rheinmetall’s network in Hungary and Western Europe, which will allow us to become a global IT service provider in a few years", said Gellért Jászai, Chairman and CEO of 4iG, on today's announcement. “The investment by one of the world's leading defence and automotive company is an important confirmation of the soundness of our strategy and recognition of Hungarian IT expertise, which is of outstanding value in international markets. The transaction will enable 4iG to become one of the leading IT and telecommunications companies in the region, alongside Hungary, in a short time", added the Chairman and CEO.
“Our participation in 4iG is an integral part of Rheinmetall’s digitization strategy. But it is also a token of our special commitment to Hungary. In recent years, Rheinmetall has made great strides in internationalizing its operations, meaning that we have now gained new domestic markets in the United Kingdom, Australia and Hungary in addition to Germany, our original home market. In these and other Western countries, Rheinmetall is actively creating local production and R&D capacity, enabling us to offer as complete an array as possible of top-of-the-line defence technology products and services”, stressed Armin Papperger CEO of Rheinmetall AG, following the announcement.
In accordance with the Hungarian legislation on strategic sectors, which protects Hungary’s security interests, foreign ownership can be acquired with the permission of the Ministry of Interior.
Budapest, 25th January 2022
* After all other ongoing transactions have been closed.
Backgorund information:
4iG Plc, based in Budapest, is one of the leading IT and telecommunications companies in Hungary and one of the leading groups in Hungary's knowledge-based, digital economy. For more than 25 years, 4iG has been present in the field of industry and industry-independent innovative technologies, continuously expanding its services and portfolio to meet the changes and needs of the ICT market. The company employs over 5,000 people. The company is a broad-spectrum solutions provider with significant interests in IT, satellite telecommunications, telecommunications and telecommunications infrastructure development. The company, listed on the Budapest Stock Exchange, aims to build a dominant market position in a wide range of info-communications services in Hungary and the Central and Eastern European and South-Eastern European regions. www.4ig.hu/home
Rheinmetall Group
Listed and
operating for more than 130 years, Rheinmetall AG as an integrated technology
group is a strong, internationally successful company. The group, headquartered
in Düsseldorf, Germany, has more than 25,000 employees worldwide. Rheinmetall
is present in 52 countries on 6 continents with 210 subsidiaries and innovative
range of products and services. The group in the two main industries of defense
and automotive has a total of five divisions. Rheinmetall is a direct supplier
to the global automotive industry and is also present in this segment as a
manufacturer and developer. In the defense industry, the group develops and
manufactures combat vehicles, complex defense systems, IT solutions, weapons,
and ammunition. Rheinmetall AG had sales of more than EUR 5.8 billion in 2021.
www.rheinmetall.com
More
information:
Péter Elkán
communications and
marketing director
peter.elkan
(@) 4ig.hu
www.4ig.hu