SoftBank Support for Wirecard Under Scrutiny After Meltdown

The Wirecard AG headquarters in the Aschheim district of Munich, Germany, on June 19.

Photographer: Michaela Handrek-Rehle/Bloomberg
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The meltdown at Wirecard AG is raising questions about the company’s complicated relationship with the troubled SoftBank Group Corp.

The Japanese conglomerate signed a strategic cooperation agreement with the payments firm last year and agreed to buy $1 billion of Wirecard convertible bonds, although that exposure was later cut through a complex transaction. This month, a partner at SoftBank’s investment arm was on track to become a supervisory board member at Wirecard.