Wirecard: North American subsidiary is up for sale

Wirecard: North American subsidiary is up for sale

The Dax group Wirecard is struggling to survive after a balance sheet scandal and the opening of insolvency proceedings – now it is likely to lose its US subsidiary soon. Wirecard North America is up for sale, as the US company said. An investment bank coordinates the process.

In the communication, the Americans emphasize their economic independence from the ailing group from Aschheim near Munich. "Wirecard North America is a self-supporting unit that is largely autonomous from Wirecard."

Wirecard acquired the US company in 2016. With the purchase of the prepaid credit card company from the bad bank of the US big bank Citigroup, the company entered the US market.

A sale of the activities could possibly only be the start of the sellout at Wirecard under preliminary bankruptcy administration stands. In view of the recent price development, speculation on the stock exchange is already speculating that investors or competitors will be part of Wirecard could buy.

The payment service provider, which handles cashless cash flows between merchants on the one hand and banks and credit card companies on the other, recently had suspected air bookings in the amount of 1.9 billion euros admitted. As a result, the company threatens to be one of the few not so long ago Germany had high tech hopes, the insolvency.

Uncertainties also with Singapore subsidiary

According to the central bank there, Wirecard is now examining in Singapore whether it is possible to continue doing business in the country. Credit card payments to merchants who have used Wirecard's services and the use of prepaid cards issued by Wirecard will be affected if the company ceases to operate in Singapore, the central bank said. However, the group's entities had ensured that client funds were in separate accounts with banks in Singapore.

Read all the articles on the Wirecard case here.

The British financial regulator FCA has now lifted the restrictions for the domestic Wirecard subsidiary. The FCA said that it had been ensured that the company could meet certain conditions. "From now, or very soon, customers will be able to use their cards as usual." After the bankruptcy of the payment processor, the authority effectively prohibited the subsidiary from doing business. Customers were unable to access their money for a few days.

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