Hungarian businessman Jaszai Gellert's investment firm KZF Vagyonkezelo has signed a definitive tripartite agreement with 4iG and Germany's Rheinmetall. Jaszai owns a majority stake in 4iG. Under the deal, Rheinmetall will buy a 25.1 percent stake in 4iG though a share purchase and capital increase, making it 4iG’s largest international strategic investor.
The multi-phase transaction is conditional on the approval of new articles of association by shareholders and the supervisory board of 4iG. The Hungarian Ministry of the Interior also has to give its consent, under the law on acquisitions by foreign companies in strategic sectors.
The definitive agreement was preceded by the successful due diligence of 4iG. With the deal, 4iG will become the preferred digitalisation and IT partner of the Dusseldorf-based global company, which is also a major player in the international defense and automotive industries.
Rheinmetall will purchase 4iG shares from KZF Vagyonkezelo. The German company will also participate in a multi-phase private equity offering worth a total of HUF 125 billion. In line with the preliminary announcement of the transaction in November, iG COM Private Equity Fund, Gellert Jaszai's interest, and a fund managed by Alpac Capital will participate alongside Rheinmetall.
iG COM Private Equity Fund, Gellert Jaszai’s company, will invest HUF 78 billion in 4iG Plc, undertaking a 12-month lock-up on the equity stake to be acquired through a capital increase.
Following approval from the general meeting of shareholders to support the capital increase, Rheinmetall will purchase 24.9 million shares from Gellert Jaszai’s investment company, KZF Vagyonkezelo, investing HUF 33.65 billion in 4iG. The company will have a 24-month lock-up on the share package.Finally, Alpac Capital fund will invest HUF 13.24 billion in 4iG.
At completion of all these steps, Gellert Jaszai’s indirect ownership in 4iG will be reduced to 50.22 percent from 56.85 percent. Rheinmetall’s stake in the IT and telecommunications company will amount to 25.12 percent.
