Wirecard plans to raise the capital by issuing convertible bonds with a total maturity of five years, sold exclusively to SoftBank
Softbank would reportedly be investing €900 million or $1 billion into Wirecard, a German fintech firm, as a part of the long-term partnership on digital payments. Wirecard recently said that it plans to raise the capital by issuing convertible bonds with a total maturity of five years, exclusively selling them to SoftBank.
Sources familiar with the matter stated that the notes will convert to around 6% stake in Wirecard. The deal is apparently subject to the approval of the shareholders of Wirecard. Share prices of Wirecard had scaled up to more than 9% post announcement.
According to Wirecard, it’s a part of an association between the two companies on digital payments. Softbank will help the firm, that beat Commerzbank from the blue-chip DAX index of Germany last year, to expand into South Korea and Japan.
Chief Executive of Wirecard, Markus Braun stated that SoftBank is a true partner that shares a passion for building new technologies and drive to lead in the latest innovations, all on a worldwide scale. In addition, through this potential collaboration, the company will expand its products and reach to the East Asian markets, further boosting Wirecard’s position in Asia, he added.
Seemingly, earlier this year, Wirecard had become the subject matter of controversy following rumors of accounting misconduct at its Singapore office. Recently, Wirecard has shown a positive stock movement, however, its share price is still lowered by about 9% since the publication of the initial report by the Financial Times (FT) on the scandal.
For the uninitiated, Wirecard is a worldwide internet technology and financial service provider, headquartered in Aschheim, Germany. The company provides its customers with risk management and electronic payment transaction, besides processing and issuing virtual and physical cards. It provides services and products in the areas of e-commerce, financial technology, mobile payments, and digitalization.
Source Credit: https://www.cnbc.com/2019/04/24/softbank-to-invest-1-billion-for-a-6percent-stake-in-payments-firm-wirecard.html