Listen to the audio version of this article (generated by AI).
Listen to the audio version of this article (generated by AI).
The deal follows a preliminary agreement signed in June and the subsequent due diligence processes and consultations with international partners,
As a result, 4iG Space and Technologies (4iG STD) will acquire a majority stake in N7 Defence Holding, a holding company founded by N7 Holding, a 100% stake in Hirtenberger Defence Systems Defence Industry Kft and an indirect minority stake in Rheinmetall Hungary.
Production and sales of the assets will remain under domestic ownership, putting Hungarian interests first, the ministry said.
A market-based defence industry can ensure the secure supply of the Hungarian Defence Forces, while also getting more international orders, it added.
A private sector player is best equipped to access European Union and member states’ defence industry development programs, and able to ensure the necessary capital, without increasing state debt or adding to the fiscal burden, the ministry said.
With the agreement signed on Monday, 4iG STD is to acquire direct or indirect ownership in six companies. N7 Holding will transfer its ownership stakes in defence industry companies Aeroplex, Arzenal Fegyvergyar, Colt CZ Hungary and Rheinmetall Hungary Munitions as in-kind contribution to N7 Defence.
4iG SDT will acquire a 75% plus one vote stake in N7 Defence. 4iG SDT will buy a 100% stake in mortar and ammunition maker Hirtenberger and thereby acquire its shares in its subsidiaries. In the third transaction, N7 Holding will transfer its 49% stake in Rheinmetall Hungary as an in-kind contribution to its subsidiary VAB Kft, then 4iG SDT will acquire a 75% plus one vote stake in VAB Kft, whereby it will acquire an indirect minority stake in Rheinmetall Hungary.
The closing of all transactions is subject to various conditions. The net value of the transactions is HUF 72.1 billion. The purchase price is based on independent appraisals prepared by Ernst & Young Consulting.
Producing journalism that is worthy of the name is a costly business. For over 30 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.
