The 4iG Group’s Space and Defense Technologies Ltd. is purchasing a 74% stake in Rába Automotive Holding Plc. (Hungarian vehicle and automotive component manufacturer) through a project company for nearly HUF 25 billion (approx. EUR 62.5 million). A mandatory public tender offer will be made for the remaining shares at a price of HUF 1,789 (about EUR 4.47), which is expected to close by mid-October.
The aim of the acquisition is for Rába to operate as a regional manufacturing and development center in Győr (northwest Hungary) in the future and to strengthen its role in the international defense industry. The company could become one of Tatra’s most important European suppliers, offering automotive solutions to NATO and EU member states.
Rába H14 Hungarian military vehicle. Photo: Wikipedia
The Czech Czechoslovak Group (CSG) defense subsidiary, CSG Defense, is joining the transaction as a professional partner. Under the agreement, 4iG will receive exclusive rights in Hungary to sell, assemble, and service Tatra military vehicles. CSG Defense has also been given the option to acquire a 49% stake in 4iG’s project company.
According to Gellért Jászai, President and CEO of 4iG, building on Rába’s nearly 130-year industrial history, a modern company can be created that offers Hungarian-made and developed defense solutions. The Czech partner’s participation not only brings professional knowledge and international connections, but may also help Rába enter foreign markets in the long term.
As a result of the news, 4iG shares rose 6.3 percent to HUF 2,275 (EUR 5.69) on Monday morning on the Budapest Stock Exchange.
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Via MTI; Featured photo: MTI/Bodnár Boglárka
The post 4iG Invests in Rába, Hungary’s Historic Automotive and Defense Company appeared first on Hungary Today.
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