Wirecard Shares Rise after KPMG Finds No Tampering in Financial Statements
13 März 2020 - 10:52AM
Dow Jones News
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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