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Aug. 20, 2020, 1:18 a.m. EDT

Delivery Hero replaces insolvent Wirecard on DAX

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By Olivia Bugault

Delivery Hero AG will replace insolvent Wirecard AG on Germany's blue-chip DAX index, Deutsche Boerse AG said late Wednesday, after an accounting scandal that toppled the fintech company.

The move came after the German stock-exchange operator announced new rules last week requiring insolvent companies to be removed from the index.

The German food-delivery company will join the DAX on Monday after the market closes, Deutsche Boerse said. Based on the criteria for DAX membership, including market capitalization and free float, the inclusion of Delivery Hero was widely expected.

Delivery Hero raised its guidance for 2020 in late July after posting increasing revenue for its second quarter and despite an initial drop in orders in the March-to-May period due to the coronavirus pandemic.

"Continuing at this pace, 2020 is set to be the first year in which Delivery Hero will total more than one billion orders on its platforms," the company said in the publication of its quarterly results.

In 2019, Delivery Hero booked EUR1.46 billion in revenue and now targets revenue between EUR2.6 billion and EUR2.8 billion for this year.

Wirecard's ejection from the DAX comes roughly two years after it first entered the index and follows weeks of controversy. In June, Wirecard said that more than $2 billion missing from its balance sheet probably didn't exist. A few days later, the company filed for insolvency after a dramatic fall in share price and the arrest of its former chief executive, Markus Braun.

Write to Olivia Bugault at olivia.bugault@wsj.com

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