Hungary's government is diving into tech giant 4iG's contracts after Prime Minister Péter Magyar flagged concerns over possible graft,inflated pricing. The probe targets a company rapidly becoming a force in telecoms,IT, defense.
Called "mothership" for firms thriving on state contracts during the Fidesz-KDNP era, 4iG expanded fast. Magyar noted the firm secured state IT contracts worth billions through 2010s, ramping up post-2022, including a huge HUF 389 billion bond issue National Bank of Hungary.
4iG raised over HUF 400 billion via Antenna Hungária,seizing a majority stake,strengthening telecom position. Its aggressive path continued with 2023 HUF 660 billion acquisition of Vodafone Magyarország,backed partly by state-owned Hungarian Development Bank.
Magyar criticized 4iG's role in a project for elderly medical alert bracelets,calling it "overpriced." He emphasized transparency, saying,"We are talking about several thousand billion forints of taxpayers’ money. Hungarians have a right to know what happened to their money." Probe results will be public,and any misconduct reported to authorities.
4iG's rise isn't just corporate growth; it's tied to state. Under Gellért Jászai, firm acquired DIGI,Invitech,becoming key telecom player . Vodafone deal, worth HUF 660 billion,fueled by public funds,including €425 million from MFB.
4iG's government ties extend beyond telecoms. By 2025, they plan joint defense-industry holding,with 4iG taking a 75% stake. A state-backed HUF 50 billion facility will aid military tech push.
Financially,4iG showed strong 2025 numbers: revenues at HUF 733.9 billion,EBITDA HUF 275 billion, profit after tax HUF 36 billion. With Hungary consolidation done, it's eyeing global ventures. In U.S.,4iG's defense,space arm,4iG Space and Defence Technologies (4iG SDT),invested $100 million in Axiom Space, becoming strategic stakeholder in commercial space stations.
In Israel,4iG teamed with Israel Aerospace Industries (IAI) to restructure SpaceCom; IAI takes 80% control while 4iG keeps 20% and part of a $12 million loan. These global moves show 4iG's aim to market defense,space tech globally,using its government ties.
As investigation continues,4iG promises transparency,cooperation. "We are convinced that our cooperation with state of Hungary is undertaken in a framework that complies with regulations and is fair and advantageous for Hungarians," it said, pledging all necessary documents for objective review.
After probe's announcement,4iG's stock plunged 14.52% to HUF 1,590 Monday . Slide continued Tuesday, trading at HUF 1,570, down another 1.26%. Market jitters over 4iG's future amid scrutiny…
