By Mauro Orru

 

Wirecard AG's shares soared at market opening on Friday after the company said late Thursday that KPMG's probe into its activities in India, Singapore and its merchant cash advance division didn't find signs of tampering in its historic financial statements.

Wirecard's shares climbed as much as 29% at market opening before settling in the single-digit percentage range. At 0913 GMT, shares traded 9% higher at EUR93.58.

"This announcement is clearly positive for Wirecard as it should start to lift the doubts hanging over the accounting of the company," said David Vignon, analyst at European investment bank Bryan Garnier.

Simon Bentlage, analyst at German bank Hauck & Aufhaeuser, said the announcement "provides a lot of confidence in Wirecard's business," pointing out that R&T, EY and KPMG, all of which looked into Wirecard's Singapore operations, found no material issues.

"We take the news as very reassuring dismissing major accusations regarding very important regions for Wirecard," Mr. Bentlage said.

Wirecard commissioned an independent audit by KPMG after a series of reports in the Financial Times alleging accounting impropriety at the German payments company.

Wirecard said that while KPMG's probe is "largely completed," the investigation of third-party partner business TPA is still continuing, which should be wrapped up by April 22.

Mr. Vignon said the probe of TPA should "partly weigh on the stock, as some of the third-party dealing with Wirecard were extensively featured in the FT's reporting, notably Al-Alam Solutions."

 

Write to Mauro Orru at mauro.orru@wsj.com; @MauroOrru94

 

(END) Dow Jones Newswires

March 13, 2020 05:37 ET (09:37 GMT)

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