What does the stock market collapse of the German fintech Wirecard conceal?

What does the stock market collapse of the German fintech Wirecard conceal?

Wirecard's auditor, EY, refused to certify the 2019 financial statements of the German payment company because € 1.9 billion is missing. All the details

Stock exchange storm and not only for Wirecard, a Munich-based fintech company, founded in 1999 and promoted to the German blue-chip index Dax in 2018.

Wirecard's auditor refused to certify the 2019 financial statements of the German payment company because 1.9 billion euros are missing from the appeal.

The news of the postponement of the approval of the budget has made the stock drop by more than 60% because – Reuters points out – Wirecard has warned that its creditors could ask for the early repayment of loans for billions of euros already starting tomorrow.

Indeed, Wirecard reported that the auditor EY informed her that she had not found sufficient evidence of 1.9 billion euros of liquidity on the trust accounts. The sum equals a quarter of the company's balance sheet, Reuters notes.

“It is currently not yet clear whether fraudulent transactions have occurred to the detriment of Wirecard AG. Wirecard AG will file a complaint against unknown persons, "reads a statement.

Wirecard has warned that if it is unable to present the annual and consolidated financial statements by tomorrow, it will be forced to repay loans for a total value of approximately 2 billion euros.

"For some time the company has been targeted by investors who sell it in the open, questioning its financial data – wrote Reuters – The so-called" short-sellers "have sunk the stock today, pushing it down 60% to the stock exchange. Frankfurt and sending up € 8 billion in capitalization ”.

As explained to the Financial Times, the payments team has reported that there were suspicions of a trust Wirecard bank accounts that would attempt to "deceive the auditor creating a wrong perception of the existence of such cash balances".

The shares of the German technology group, which only two years ago had been included in the prestigious Dax 30 index after having recorded a market value of 24 billion euros, therefore collapsed after the announcement and its value fell to 4 billion of Euro.

The company, which owns a bank in Munich, said it "worked intensively with the auditor to clarify the situation". He noted that if the 2019 financial statements are not published by Friday 19 June, then 2 billion euros of loans to the company may be "terminated".

The near future of Markus Braun, CEO and major shareholder of the company, who oversaw the expansion of Wirecard from a suburb of Monaco to all corners of the world, does not promise an easy future, wrote Agi .

Also according to the Financial Times in the past few months, Wirecard staff seemed to have conspired to fraudulently inflate the sales and profits of the Wirecard branches in Dubai and Dublin and mislead EY, the group's auditor for a decade. Since March Wirecard has postponed the publication of the 2019 results three times, but has since then repeatedly told investors that it "expects an unqualified review opinion."


This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia/che-cosa-cela-il-tracollo-borsistico-della-fintech-wirecard/?utm_source=rss&utm_medium=rss&utm_campaign=che-cosa-cela-il-tracollo-borsistico-della-fintech-wirecard on Thu, 18 Jun 2020 06:25:25 +0000.