Govt-close Hungarian 4iG takes control of automotive company, teams up with Czech defence giant
4iG Group has signed agreements to acquire a controlling stake in automotive industry company Rába and form a partnership with CSG Defence that could give the Czech company a minority stake in Rába, the listed company said on Monday.
4iG SDT EGY, a project company of 4iG Group member 4iG Space and Defence Technologies, signed agreements to acquire a combined 74.3pc stake in Rába from N7 Holding National Defence Industry Innovation Company and the foundation that runs Szechenyi Istvan University. 4iG SDT EGY also announced a mandatory public purchase offer for the rest of Rába’s shares at a price of HUF 1,789/share.
The offer price is over the HUF 1,552 180-day average price, stock exchange data show. The public purchase offer must still be cleared by the National Bank of Hungary (NBH). In a press release, 4iG put the value of the transaction at close to HUF 25bn which it will finance with its own capital and credit.
Under a separate memorandum of understanding, CSG Defence has an option to acquire a 49pc stake in 4iG SDT EGY, conditional on the completion of the acquisition of the stakes in Rába, giving the Czech company an indirect stake of up to 37pc in Rába.
The MoU would also give 4iG SDT EGY exclusive rights in Hungary for the sale, assembly, servicing, and distribution of TATRA military vehicles. The sides would work together to make Rába the second-largest supplier of TATRA vehicles worldwide, while establishing a manufacturing and development centre for Central Europe in Győr (NW Hungary).
CSG Defence is a member of CSG Group, which develops and manufactures products, systems and technologies for the defence, aerospace and automotive industries. CSG Group has manufacturing bases in the United States, the United Kingdom, Germany, Italy, Czechia and India.
In a separate statement, the National Economy Ministry said the sale of N7 Holding’s 54.3pc stake in Rába to 4iG Group would support the automotive industry supplier’s integration on international markets and strengthen its stability. 4iG Group is able to support Rába’s existing project portfolio and the development of 8X8 vehicle platforms, it added.
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