Subscribe
Be the first with the news that moves the market- Fintech company Change Financial (CCA) has pocketed a neat refund from its recent Wirecard buyout, slashing the effective cost by around $1.35 million
- Change announced the buy-in September, and at the time was set to cough up $7.8 million for control of Wirecard, which went into administration in July
- Today, however, Change told shareholders it has worked out a net working capital adjustment for the buyout with Wirecard’s administrators
- The result is a $1.35 million refund on the buy, slashing the effective price by 17 per cent to $6.45 million
- Change said the biggest contributor to the price change was from former Wirecard debtors paying outstanding invoices after Change signed the purchase deal
- Shares in Change are up over 3 per cent this afternoon and currently worth 15.5 cents each
Change Financial (CCA) has pocketed a neat refund from its recent Wirecard buyout, slashing the effective cost by around $1.35 million.
Change announced the purchase in September, at the time offering $7.8 million for full control of the embattled financial services business.
Wirecard provides card management and payment platform solutions, but the company fell into voluntary administration in July 2020. Before going under, Wirecard’s tech hosted more than 120 customers across 35 countries, many of which were blue-chip stocks.
As such, Change shares soared when the company announced it would be taking over Wirecard.
Now, today, CCA shareholders have been told the company has nabbed an even sweeter deal.
Change said after finalising Wirecard financial accounts to the end of September 2020, it has managed to work out a net working capital adjustment for the buyout with Wirecard’s administrators.
The result is a refund of NZ$1.47 million (roughly A$1.35 million) for Change Financial, effectively slashing the total purchase price by 17 per cent to $6.45 million.
Change said the biggest contributor to the price change was from former Wirecard New Zealand and Australia debtors paying outstanding invoices after Change signed the purchase deal.
Meanwhile, Change said it is still integrating its new Wirecard assets and will give further updates to shareholders as it progresses.
Investors seem to like the idea of a neat discount to the purchase price. Shares in Change are up 3.33 per cent and worth 15.5 cents each at 1:21 pm AEDT. CCA has a $62.43 million market cap.
