Sectors

US offshoot puts itself up for sale

The Wirecard scandal is now reaching the USA – at least indirectly: The US subsidiary of the German company is looking for a buyer for itself. The message could mark the start of a sale.

The Dax group struggling to survive due to a balance sheet scandal DAX index Wirecard WIRECARD AG share should soon lose his US subsidiary. Wirecard North America is up for sale, the US company said on Tuesday night.

An investment bank coordinates the process. In the communication, the Americans emphasize their economic independence from the ailing group from Aschheim near Munich. “Wirecard North America is a self-supporting unit that is largely autonomous from Wirecard,” it said.

Investors speculate on takeover by competition

Wirecard was only in 2016 with the acquisition of a prepaid credit card company from the bad bank of the US major bank Citigroup Citigroup Inc share entered the US market. A sale of the activities could possibly only be the start of the sale at Bayern, which is now under preliminary insolvency administration. In view of the recent price development, speculation is already speculating on the stock exchange that investors or competitors could grab parts of Wirecard.

The payment service provider, which handles cashless cash flows between merchants on the one hand and banks and credit card companies on the other, had recently admitted suspected air bookings of EUR 1.9 billion. As a result, the company, which was not long ago considered one of the few really big tech hopes in Germany, faces insolvency.

According to the central bank there, Wirecard is examining in Singapore whether it is possible to continue doing business in the country. Credit card payments to merchants who have used Wirecard services and the use of prepaid cards issued by Wirecard will be affected if the company ceases to operate in Singapore, the central bank said. However, the group’s entities had ensured that customer funds were in separate accounts with banks in Singapore.

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