Several investors are showing increasing interest in the shares of the German multinational financial and technology services company Wirecard, which has increased the current value of its shares by almost 200%.
Recently, Wirecard declared that it could not meet its debt payments to its creditors in the short term, as it was in a state of economic insolvency due to the current situation facing the company. Wirecard, which until recently enjoyed shares worth around 104 euros and a capitalisation of more than 24.000 billion, experienced a brutal fall in the value of its shares that brought them to a value of only 1,28 euros per share. An event that caused the complete decapitalisation of the technological multinational.
Now, after suffering a brutal fall, Wirecard shares seem to be increasing in value again. Several investors and similar companies have shown their interest in the shares of this multinational, so the value of Wirecard shares on the Frankfurt Stock Exchange experienced a for Growth of almost 200%.
The recent interest of investors and other financial services companies in Wirecard shares led to an increase of almost 195% in the value of these shares. Currently, the shares of this multinational are positioned at 3,26 euros at the date of this publication, and the possibility of other competing companies in the sector or an investment fund acquiring the multinational is being studied. Among those interested in Wirecard are: Wordline, a French company also dedicated to providing technological services in France and Europe.
It may interest you: Wirecard is under audit and 1.900 billion euros are not available in its accounts
The Wirecard scandal
It's been a long time since the news broke that Wirecard, the German multinational financial and technology services company, has reported a huge imbalance in the current state of its accounts.
Almost a quarter of Wirecard's funds are not available
Initially, Wirecard's auditing company, Ernst & Young (EY), pointed to the manipulation of account balances by an administrator, in order to inflate and mislead auditors about the real state of Wirecard's accounts.
The audit revealed that more than 1.900 billion euros were missing, representing almost a quarter of the cash that the multinational reported in its accounts. Instead of presenting the company's annual balance sheet, its executives announced that they would postpone this event until the situation with the missing funds was clarified; also pointing out that if Wirecard's annual financial statements were not available by the end of June, many of the loans granted by the multinational could be cancelled. Undoubtedly a complete scandal.
Markus Braun, CEO and founder of Wirecard, resigns
Then, a few days after this event, the president and founder of Wirecard, Markus Braun has resigned taking responsibility for the situation the company is currently facing. A few days later, Braun was arrested by German authorities and charged with fraud and market manipulation, and several other company executives were also forced to resign.
This series of events caused a brutal collapse in the value of the company's shares, falling by more than 80%, going from a value of around 104 euros to touching 25,82 euros per share. At this time, Wirecard was considered one of the most successful and recognized technological multinationals worldwide; therefore, the scandal and the subsequent fall in its shares caused the company to lose more than 20.000 billion euros in capital.
They ordered the total cessation of the company's services
Subsequently, when the value of the shares seemed to stabilize near this new value, the UK Financial Conduct Authority (FCA) issued a regulatory measure ordering the complete cessation of Wirecard's activities, forcing several of its subsidiaries and associated companies to suspend services related to this multinational. This new event caused a new fall in the shares, reaching a value of only 1,28 euros per share.
Likewise, with the FCA order, debit cards cryptocurrencies, handled by Wirecard's partner companies, Crypto.com, TenX, Wirex y Cryptopay were suspended, leaving users of these cards with many doubts and uncertainties. However, despite the situation, the CEOs of these crypto companies spoke out on the matter, stating that the users' funds available on these cards will not be affected and that they will soon announce measures to resolve the uncomfortable situation.
Continue reading: Wirecard declares financial insolvency while its customers' debit cards are frozen
