4iG board decides on Rheinmetall capital raise
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The board of 4iG has decided on a private placement of new shares with German defense industry company Rheinmetall through a HUF 33.7 billion cash contribution, the listed IT company said in a disclosure on the website of the Budapest Stock Exchange.
The deal is part of a multi-stage transaction announced in January in which institutional investors will raise a total of HUF 125 bln in 4iG. Rheinmetall will subscribe to 50,223,881 new shares with a 24-month lock-up period.
The board justified the private placement citing Rheinmetall's position as an "experienced strategic investor in the area of digital military technologies and defense communication services."
4iG noted that Rheinmetall will subscribe to the new shares at a discounted price of HUF 670 per share, in line with international practices when a lock-up period is applied.& nbsp;
A joint venture established by the state of Hungary and Rheinmetall is building a HUF 60 bln plant that will make Lynx infantry fighting vehicles in Zalaegerszeg (215 km southwest of Budapest).
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