Japan’s Softbank Group Corp will invest around 900 million euros ($1 billion) in Wirecard in a convertible bond deal that could give it a 5.6 percent stake in the German digital payments company, according to Reuters. The investment by the world’s biggest private technology company will allow the Munich-based firm to expand its operations in Asia.
The two companies unveiled a strategic partnership in which Softbank will help Wirecard expand in Japan and South Korea, and provide opportunities to work with other companies in its portfolio in areas such as data analytics, AI and digital financial services.
Other Softbank investments in its Vision Fund range from ride-sharing giants including Uber, DiDi, Grab and Ola to new financial and business services such as WeWork. Analysts said the partnership could provide further growth opportunities for Wirecard.
“Wirecard has a strong track record in pioneering innovation in digital payments and has been at the forefront in reshaping modern consumer behaviors,” a spokesman for Softbank said.
“We are excited to partner with the company and see huge potential to deploy this technology at scale across new markets and sectors within SoftBank’s global technology portfolio.”
Wirecard has expanded beyond deals with the banking sector and is seeking to become the go-to platform for e-commerce.
This year, it has stuck partnerships with companies including Swatch of Switzerland; Chinese travel firm Ctrip; German state railways Deutsche Bahn and German supermarket chain Real.
Convertible Bonds
Under the agreement, Wirecard will issue bonds exclusively to an affiliate of Softbank that have an option to convert into 6.92 million Wirecard shares after five years, currently equivalent to around 5.6 percent of the company.
The conversion price of 130 euros per share represents a 5 percent premium to Wirecard’s closing share price on Tuesday. Shareholders will vote on the bond issuance at its annual meeting on June 18.
Wirecard shares have shed around 38 percent since hitting a high of 199 euros in early September, hurt by negative sentiment around tech stocks and reports in the Financial Times, saying staff at its Asian operations had inflated reported revenue.
FILE PHOTO: REUTERS/Michael Dalder
Banking 4.0 – „how was the experience for you”
„So many people are coming here to Bucharest, people that I see and interact on linkedin and now I get the change to meet them in person. It was like being to the Football World Cup but this was the World Cup on linkedin in payments and open banking.”
Many more interesting quotes in the video below:
