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4iG board urges shareholders to refuse buyout offer

Deals

4iG

The board of IT company 4iG Nyrt. recommended shareholders refuse a public purchase offer by a consortium of companies and funds controlled by investor Lőrinc Mészáros, arguing that keeping a large number of 4iG shares in free float serves the firmʼs interests.

"This ensures the necessary broad shareholder oversight, the companyʼs continued presence on the stock exchange and the public nature of its operation," the board said in an opinion published on the website of the Budapest Stock Exchange (BÉT) late Tuesday.   

On June 6, Opus Global announced it had reached agreements with shareholders of 4iG to acquire just over 50% of the companyʼs shares, in concert with its partners. As required by law, Opus Global, REPRO I Private Equity Fund, Konzum Private Equity Fund and Konzum Investment Management subsequently announced the mandatory public purchase offer, which was cleared by the Competition Authority (GVH) on Tuesday.

The offer was made at a price of HUF 2,942 per share, the statutory minimum. Shares in 4iG, listed in the Equities Standard category on the BÉT, closed at HUF 3,500 on Tuesday.

Opus Global and its partners together hold 33.57% of 4iGʼs shares at present, but they have reached agreements with other shareholders to raise that stake to 50.28%.

Opus Global wants to transfer to 4iG its 24.67% stake in Takarékinfo, which provides Hungaryʼs integrated savings cooperatives with IT and telecommunications support, with the aim of capitalizing on the two companiesʼ synergy.

Online business news portal vg.hu reported Wednesday that Opus and its partners do not plan any change in management or the employee structure or headcount at 4iG; however, it cannot be ruled out that changes may occur to adjust to future tasks.

The report added that 4iG has convened an extraordinary general meeting for July 26, which will decide on both personnel matters and the change in the face value (split) of shares issued by the company, according to an invitation published on the BÉT website on Tuesday.

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