Orbán’s Government Sells “Lion’s Share” of State Defense Industry to “Its Own” Company

On the eve of elections, the Hungarian government is preparing to sell 75% of the shares of the state defense holding company to a private company, 4iG, which is closely linked to the country’s current prime minister.

The announcement of the preparations for the acquisition of state assets was made public by the Ministry for National Economy of Hungary.

The state-owned defense holding company N7 Holding has signed a preliminary agreement to sell its market share to the private Hungarian corporation 4iG Plc.

At present, the agreement only formalizes the intention to transfer 75% of the holding company’s shares to the subsidiary 4iG Space and Defence Technologies Plc. Their value is estimated at HUF 82.8 billion ($238.4 million).

The agreement covers critical segments of the Hungarian defense industry:

• Aeroplex Ltd — aircraft maintenance company
• Airbus Helicopters Hungary — helicopter component manufacturing (Airbus 70%, N7 Holding 30%)
• Rheinmetall Hungary Munitions — ammunition manufacturing (Rheinmetall 51%, N7 Holding 49%)
• Rheinmetall Hungary — Lynx KF41 infantry fighting vehicle manufacturing
• Hirtenberger — production of mortar systems and ammunition
• Dynamit Nobel Defence — production of RGW 110 anti-tank grenade launchers
• Colt CZ Hungary — production of small arms, BREN 2 assault rifles (Colt CZ Group 51%, N7 Holding 49%)

After the deal closes, critical infrastructure (real estate, factories, and industrial facilities) will remain state-owned and will be leased by companies that have become part of 4iG SDT Plc.

The sale of key defense industry assets comes as Prime Minister Viktor Orbán’s government prepares for next year’s elections, where he will face his toughest challenge since returning to power in 2010.

The buyer, Gellért Zoltán Jászai, CEO of 4iG, is a close associate of Orbán, who accompanied him to a meeting with US President Donald Trump at Mar-a-Lago in December 2024.

Opposition leader Péter Mádiai said the privatization plan was “tantamount to treason” and called on the government to stop the deal. According to several polls, his Tisza party is ahead of Orbán’s Fidesz party.

Viktor Orbán’s favorite company

The Hungarian project Direkt36 reports that Gellért Yasaya’s company has been a priority for Prime Minister Orbán’s government for many years. Thanks to this, 4iG, which a few years ago was just an average Hungarian IT company, has grown in a short period of time into one of the largest corporations in the country, with offices in several Balkan countries. In addition to telecommunications and IT, 4iG has also entered the defense industry.

“4iG is not just another business that absorbs state orders in a market that is essentially dominated by the state, such as construction. 4iG is a company that is rapidly expanding in once competitive industries, but with a very strong tailwind: the support of the Hungarian state,” the investigators write.

According to their information, the government secretly helped the company not only through Orbán, who negotiated on their behalf, but also provided them with more than €189 million in state investments through a hidden financial maneuver. This previously undisclosed information also sheds new light on the history of 4iG’s ownership. Gellért Jászai, the company’s chairman, claims to be the majority owner of the company, partly through a direct investment fund, but according to the documents obtained by Direkt36, the state contributed most of the money to this fund.

However, the 4iG’s ties to the government are not only financial. The company’s development is also closely linked to Viktor Orbán’s ambitions to become a regional player. Government support has enabled 4iG to enter the international defense industry market. It has also begun to expand into the Western Balkans, which the Hungarian prime minister sees as a region he can turn into a Hungarian sphere of influence.