In the midst of an accounting scandal, German payments processor Wirecard has received a EUR900 million investment from Japan's SoftBank.
Tech conglomerate SoftBank will make the investment by buying five-year bonds in Wirecard that can be converted into a 5.6% equity stake at a price of EUR130 a share.
As part of the deal, the pair have inked a MoU that will see SoftBank support Wirecard's efforts to expand into Japan and South Korea. Wirecard will also get collaboration opportunities within SoftBank's payments and financial services portfolio while the companies will also explore the digital lending market.
Markus Braun, CEO, Wirecard, says: "As global innovators, we focus heavily on expanding our networks and creating opportunities for companies with groundbreaking ideas. In SoftBank we have found a partner that shares both our passion for new technologies and drive to spearhead the latest innovations, all on a global scale."
The news, which comes a day before Wirecard is due to present its annual results, sent the German firm's share price up more than 10% to above EUR136 in morning trading.
The shares had plummeted from more than EUR160 in February on allegations of financial improprieties in Wirecard's Asian operations. The Financial Times reported that a company executive was suspected of using forged and backdated contracts in suspicious transactions.
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