Extraordinary Announcement of 4iG Plc.
about signing a tripartite preliminary agreement between KZF Vagyonkezelő Kft, 4iG Plc. and Rheinmetall AG
4iG Public Limited Company (hereinafter: “4iG”) hereby informs Capital and Financial Markets that KZF Vagyonkezelő Kft. (“hereinafter: KZF”), the investment company of Mr. Gellért Zoltán Jászai, 4iG, and Rheinmetall AG (“hereinafter: Rheinmetall”) have entered into a tripartite preliminary non-binding agreement. As a result of the agreement, Rheinmetall, which is also a key player in the international defence industry and vehicle manufacturing will be able to acquire a 25.1 percent stake in 4iG through a share purchase and capital increase, making it 4iG’s largest international strategic investor as follows:
1. After legal, financial, and commercial due diligence of 4iG and negotiation of the final transaction documents, Rheinmetall would purchase 4iG shares from KZF. In the framework of an over-the-counter (“OTC”) transaction.
2. Additionally, Rheinmetall AG would also take part in the private capital increase planned for approximately HUF 120 billion in which among Mr. Gellért Zoltán Jászai's interest, iG COM Private Equity Fund and the fund handled by Alpac Capital would also contribute. According to the preliminary agreement, the planned capital increase by share premium would be realized by issuing 4iG shares at a share price of HUF 670.
As a result of the sale of the block of shares and the planned capital increase, Mr. Gellért Zoltán Jászai's indirect ownership and control over 4iG would not change significantly.
Subject to due diligence, negotiation of final transaction documents and required corporate approvals, the parties involved in the capital increase undertake an at least one-year lock-up on the package of shares acquired by them.
In accordance with the Hungarian regulations on the control of foreign investments that violate Hungary's security interests in strategic sectors, the transactions may take place after the permission of the Ministry of Interior as planned by the end of January 2022.
1. According to the preliminary agreement, after the completion of the transactions, an IT company jointly owned by Rheinmetall (51%) and 4iG (49%) will be established.
The aim of the founders is for 4iG to serve the IT needs of Rheinmetall's Hungarian and other interests by the joint venture company. Furthermore, the IT joint venture could be involved in the development of armament industry and defence IT solutions.
Accordingly, the IT joint venture could be the IT service provider of Rheinmetall and the Hungarian state’s joint investment of one of the world’s most modern combat vehicle factories in Zalaegerszeg, from 2023.
In the first years, the partnership will cover Hungary and Rheinmetall's Central and Eastern European interests, which the parties will gradually extend to Rheinmetall's entire international network
Budapest, 25th November, 2021