Hungary to review contracts with 4iG, hitting its shares

BUDAPEST, Aug 17 (Reuters) - Hungarian Prime Minister Peter Magyar said on Monday his government will review contracts signed between the state and Hungarian IT and telecoms company 4iG while the former government of Viktor Orban was in power.

The news sent 4iG's shares sharply lower, down more than 11% in late afternoon trade and on course for their biggest one-day loss since Magyar's election in April.

4iG did not immediately respond to a request for comment.

"The government has ordered a review of all their contracts with the state," Magyar said in a post on Facebook, adding that the company had acquired assets of strategic importance under Orban's government.

4iG has interests in the telecoms sector, IT, defense and the space industry.

Magyar said, among other inquiries, there was a review underway of a framework deal worth more than 1.3 trillion forints ($4.2 billion) signed weeks before the April elections between 4iG and the defense ministry.

He said the government would make the findings of its reviews public and, in case of any irregularities, it would turn the information over to the relevant authorities.

Oligarchs close to Orban and his government expanded their influence in strategic sectors after he gained power in 2010.

($1 = 312.7700 forints)

(Reporting by Krisztina Than and Anita Komuves; Editing by David Holmes)