Czech defence giant snaps up stake in government-tied 4iG, making shares rocket after brutal fall

A Czech defence conglomerate, CSG, has acquired a 49% stake in Hirtenberger Defence Systems Védelmi Ipari Kft (HDS), a subsidiary of 4iG Űr és Védelmi Technológiák Zrt (4iG SDT), a manufacturer in Hungary’s defence sector, the 4iG group announced on Tuesday.

Czech arms manufacturing giant comes to Hungary

The statement emphasised that majority ownership and control of HDS (at 51%) will remain firmly in Hungarian hands, the Hungarian News Agency wrote.

The partnership aims to bolster the export capabilities of the Austria-based firm, which boasts 160 years of history in producing mortar grenades. It will also expand joint development and manufacturing capacities to meet surging European demand for defence products, while establishing regional supply security and production independence, the companies said.

The deal cements the strategic alliance with CSG and lays the groundwork for an integrated defence industry collaboration spanning multiple countries, according to István Sárhegyi, chairman and chief executive of 4iG SDT.

A key objective for the company is to position HDS as a reliable domestic supplier to the Hungarian armed forces, while strengthening its footprint in central and eastern Europe with advanced mortar systems, Mr Sárhegyi added.

New plant may be built

The announcement highlighted synergies between HDS operations and the ammunition and explosives expertise of CSG’s MSM Group, which could yield significant efficiencies through integrated development, manufacturing, and supply chains. To address rising European demand, the partners are exploring long-term greenfield investments to build new production facilities in Hungary.

This agreement forms part of a broader strategic tie-up between 4iG SDT and CSG, encompassing domestic representation of Tatra vehicles, joint manufacturing and development projects at Rába, and preparations for military and international export programmes.

As part of the cooperation, CSG Group will acquire an indirect 37 per cent stake in Rába Járműipari Holding Nyrt, subject to capital markets regulations and the completion of necessary approvals, the statement said.

4iG shares, listed in the premium category of the Budapest Stock Exchange (BÉT), traded at HUF 2,680 following the announcement, a 16.5% rise on the previous close. Over the past year, the stock has fluctuated between HUF 1,340 and 4,965.

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