Japan Softbank’s $1bn bet a boon for battered Wirecard
The firm operates as one of several payment providers for ride-hailing service Uber Technologies, in which SoftBank’s technology-focused Vision Fund owns a 15% stake
London — SoftBank Group’s $1bn bet on Wirecard is a boon for the battered German digital-finance firm and secures a major European partner for the Japanese tech conglomerate that’s bulking up in mobile payments. For SoftBank, the agreement furthers its transformation from a telecommunications operator into a technology investor under founder Masayoshi Son. For Wirecard, the investment means easier access to markets in Asia and a vote of confidence after months of whipsawing shares following allegations of accounting misdeeds at its Singapore unit. The deal involves a strategic partnership and a potential 5.6% stake at a price that’s 27% below Wirecard’s peak. The transaction, backed by convertible bonds, could make SoftBank Wirecard’s second-largest shareholder after CEO Markus Braun. The deal is a “clear positive” for Wirecard, Knut Woller, an analyst with Baader Bank, said in a note. It will enable the company, based near Munich, to better sell its products in Japan and South K...
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