German payments technology provider Wirecard is weighing a share buyback plan after bagging an investment from Japanese conglomerate Softbank Group, Reuters reported.
Last month, SoftBank said that it will invest nearly €900m ($1bn) in Wirecard.
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The deal involves the issuance of convertible bonds exclusively to Softbank by Wirecard.
The payments firm now intends to offer its shareholders part of the proceeds of the bond issue.
According to the report, the amount of proceeds expected to be offered to the shareholders will be substantial.
Wirecard CEO Markus Braun said: “We have already started very quickly to make this partnership happen.”
Braun further said that Wirecard started negotiations with six to eight firms in Asia, Europe and the US in Softbank’s portfolio over partnership on digital payments.
The latest news comes as Wirecard increased its revenues to €566.7m in the first quarter of 2019.
This marks a surge of 35% from previous year’s revenues.
For the three-month period ended 31 March 2019, the firm’s earnings before interest, tax, depreciation and amortisation (EBITDA) jumped 41% to €158m from €112.3m.
Transaction volumes processed via Wirecard platform increased 37% year-on-year to €36.7bn.
Wirecard also raised its profit forecast for the fiscal year 2019.
In 2019, the firm anticipates EBITDA of between €760m and €810m.
