Reuters
Published Jul 07, 2020 05:47AM ET
Updated Jul 07, 2020 11:50AM ET
By Tom Sims and Hans Seidenstuecker
FRANKFURT (Reuters) - Wirecard's (DE:WDIG) administrator said on Tuesday that more than 100 investors have expressed interest in buying the collapsed German payments firm's core business and holdings.
The firm filed for insolvency last month owing creditors 4 billion euros ($4.5 billion) after disclosing a 1.9 billion euro hole in its accounts that its auditor EY said was the result of a sophisticated global fraud.
"The aim is to find timely investor solutions in the interest of creditors, employees and customers," administrator Michael Jaffe said in a statement after a creditors meeting.
The potential sale of Wirecard North America's assets was most advanced, Jaffe added, with investment bank Moelis (NYSE:MC) & Company already mandated to conduct a sale.
Sale processes are also being initiated for other international holdings as well as Wirecard's core business, he said, adding that most of its customers were being constructive and showing an interest in a speedy sale process.
Jaffe said potential investors would soon be able to start due diligence procedures in virtual data rooms.
Reuters reported on Monday that Jaffe was likely to raise only about 400-500 million euros for Wirecard's assets, citing one person close to the matter. This would be about 10% of the total creditors are owed.
Deutsche Bank 's (DE:DBKGn) chief executive said on Tuesday it was too early to say how it might help Wirecard Bank, adding that its own exposure to the Wirecard fraud was very limited.
Germany's largest bank said last week that it was working with financial watchdog BaFin and Wirecard's administrator on possible support for Wirecard Bank.
While it was "too early to judge" how Deutsche Bank may be involved, CEO Christian Sewing said it was "almost an obligation" to look at Wirecard Bank for opportunities or to stabilise it given his company's focus on transaction banking.
"We all now need transparency and that's the first task," Sewing told a webcast event organised by Bloomberg News.
Deutsche Bank said last week that it was ready in principle to support Wirecard Bank "in the context of a continuation of business operations" if assistance became necessary.
Separately, European Union finance ministers are due to discuss stronger regulation of payment providers at a meeting this week, a German government official said.
"Europe-wide rules are urgently required," the official added. Germany's regulation of Wirecard has come under intense scrutiny since the rapid demise of the former fintech star.
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.