Japanese conglomerate SoftBank Group has unveiled plans to invest around €900m ($1bn) in German payments firm Wirecard.
As per the agreed terms of the transaction, Wirecard will issue convertible bonds exclusively to Softbank.
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The bonds will convert into 6.92 million Wirecard shares following a five-year period, with each share priced at €130.
The bond issuance is pending shareholder nod.
The transaction will offer SoftBank a holding of nearly 5.6% in Wirecard.
The companies also struck an agreement on digital payments, which mandates SoftBank to support Wirecard’s expansion into Japan and South Korea.
As part of the agreement, the Japanese firm will also offer collaboration opportunities within its portfolio.
The opportunities offered will cover various areas such as digital payments, data-analytics/AI as well as other digital financial services.
Moreover, the companies intend to explore new digital lending offerings.
Wirecard CEO Markus Braun said: “In SoftBank we have found a partner that shares both our passion for new technologies and drive to spearhead the latest innovations, all on a global scale.
“In addition, through this potential partnership, we will expand our reach and products to the East Asian markets, thereby further strengthening our position in Asia.”
In 2017, SoftBank invested around $1.4bn in Indian mobile payments firm Paytm.
