Middle East and Africa digital payments company Network International (NETW) group Network International will investigate claims in a report by a short-seller regarding links to failed German payments firm Wirecard.
ShadowFall Research, run by former City analyst Matthew Earl, had recently raised criticisms about Network International’s $288 million (£213 million) acquisition of African business DPO Group and its subsidiary AconaOnline. The acquisition was unveiled in July but is yet to complete.
‘We take any critique of the company seriously’, Network International said in a statement issued on Christmas Eve.
BEAR RAIDERS GATHER
Networkers International had been targeted by hedge funds and short-sellers since September, sparking two significant stock sell-offs, first in mid-September and again towards the end of October.
That saw the stock roughly halve from near 400p levels. While the share price recovered some of those declines through November, the stock has again weakened right through December.
The stock rose 1.8% on Christmas Eve to 289p, valuing the FTSE 250 business at just over £1.6 billion. However, the stock remains the UK’s eighth most sorted stock, with 6.6% of its shares in the hands of sellers, according to data from ShortTracker.
WIRECARD SHOCKWAVES
German payment processing giant Wirecard collapsed in June after a €1.9 billion hole opened up in its finances following a fraud scandal The collapse of one of Germany’s biggest companies by value sent shockwaves through the financial world.
Network International said it expected to publish a response by the end of January.
‘We remain confident of our strategy, and the long-term fundamentals of the markets we operate in and look forward to releasing our year end trading update on 14 January 2021’, it said.
