Shares of the company 4iG have lost over 32 percent of their value in a single month, as the company considered a vassal business of the ousted Prime Minister Viktor Orban may face legal troubles.
According to data from the Hungarian Stock Exchange, 4iG's share price fell to 2,340 forints at the close of trading on Monday, down from 3,400 a month earlier. The company has been losing value rapidly for some time, as polls have pointed to a possible loss for Orban.
After verifying this situation, shares continued to fall due to fears that the company could be subject to criminal investigations for corrupt ties to the previous government.
4iG shares
In fact, like 4iG, there are several other large Hungarian companies that have been classified by the elected Prime Minister Magyar as the NER group, a network of institutions and private companies that constituted the backbone of the corrupt system established in Hungary, including the companies of the oligarch Lőrinc Mészáros.
Prime Minister-elect Magyar has publicly stated that the government will set up a special office to track down and seize the assets of these companies. This is why 4iG shares are plummeting and compared to their peak at the end of last year, their price has more than halved.
But the company itself has defended itself by publicly stating that its activity is built on sound foundations and its contracts with major American arms manufacturers globally, such as Northrop Grumman, offer a guarantee for further growth.
4iG owns the mobile phone company in Albania, One Telecommunications. Similar to 4iG's business model, ONE has also been part of several scandals in Albania for financial ties to politics, evidenced in several SPAK files.
But even though ONE has not faced any legal or criminal sanctions so far, the uncertainty about the fate of its parent company in Hungary may have quite a few repercussions for the oligopoly duo's mobile phone company in Albania, at least in financial terms.
It is always a matter of whether the new government in Hungary will also classify the money from the purchase of One by 4iG as income from corruption, as this could open up other scenarios for the future of One.
Editorial
