Wirecard plans expansion through Softbank

Published on: 29-Apr-2019
Category: Trading
Last updated: 29-Apr-2019

Wirecard plans expansion through Softbank

Softbank invests just under 900 million euros in Wirecard, helping the payment service provider to once again increase its share price. Because there were always rumors and negative reporting, because of fraud within the company. The Japanese telecommunications company Softbank is investing in a convertible bond in Wirecard, which will be converted into over 6.9 million shares at EUR 130 each after five years. At the current level, that would be 5.6 percent of the share capital, making Softbank the fourth largest investor of Wirecard. However, the issue of the bond still has to be approved at the next shareholders' meeting on 18 June.

According to research by a Financial Times journalist, a Wirecard employee in Singapore is said to have concealed suspicious transactions. As a result, the Wirecard share price fell from 167 euros to 96 euros within a few days from the end of January to the beginning of February and 10 billion euros in stock market value were destroyed. This led so far that the Federal Financial Supervisory Authority (BaFin) issued a short sale ban. But now Wirecard has sued the Financial Times for damages. In addition, the share rose again by nine percent to 135 euros.

The increase in the price is partly due to the joint planned projects of Wirecard and Softbank. There will be a strategic partnership in the field of digital payment concepts, as well as cooperation with Softbank portfolio companies. Among other things, Wirecard intends to advance its geographic expansion in Japan and South Korea. This would allow the Bavarian payment service provider to maintain or even accelerate its strong sales.


Author:

Author  

Trading Deals




Share this post:




More interesting posts

Featured by