18. 11. 2019

KGI Announces Position in Wirecard; Support China Expansion

Prague, Czech Republic, November 18, 2019 – Krupa Global Investments (KGI) owns 45,000 shares of Wirecard, worth approximately €5m.

KGI has been buying shares of Wirecard in recent weeks after another allegation by Financial Times appeared, where FT accused Wirecard of false accounting practices in Dubai. These allegations and articles are clearly false, unfounded and paid by short sellers who benefited from steep declines in stock price after recent events. In our opinion, Wirecard is a dominant player in payment processing technology in Europe and holds neccessary licenses which is giving them competitive advantageagainst other market players. Their importance can be seen in good relationship with german authorities. German regulator BAFIN and German government are fully supporting Wirecard’s mission and expansion, which we saw in January 2019 after first FT report was published and BAFIN banned shortselling due to potential stock manipulation.

Recently, Wirecard announced acquisition of Allscore Payment Services in China, which will enhance their incredible growth further. By this acquisition Wirecard will obtain unique license portfolio including cross-border licenses, which enables Wirecard to support Chinese and international companies in their business inside and outside of China. On the other hand, Wirecard has launched cooperation with YeePay, leading mobile and online aqcuirer in China for airline and travel industry where Wirecard will provide payment processing services for customers outside of China. Total transaction volume is expected to be €17bln annually.

Representatives of KGI spoke briefly with management of Wirecard last week. After conversation, we have full confidence in Wirecard accounting and execution practices. We believe in successful result of Singapore investigation and positive outcome of KPMG audit to be released in Q1 of 2020. Management ensured us that this audit will stop any further allegations and prove existing wrong.

“KGI wants to be part of Wirecard story and their business because we have full confidence in their business model and projected growth trends, currently improving with China expansion plans. Markus Braun CEO of Wirecard and whole team has proven for years that Wirecard has strong fundament and their business model is unique with lot of competitive advantages within different payment technology segments.” said Pavol Krupa, Chairman of Krupa Global Investments.