Euronet Worldwide Trumps Ant Financial’s Bid to Buy MoneyGram
Tue Mar 14 2017
Mark Cooper (2226 articles)

Euronet Worldwide Trumps Ant Financial’s Bid to Buy MoneyGram

U.S. electronics payments provider Euronet Worldwide Inc said on Tuesday it offered to buy money-transfer company MoneyGram International Inc for $ 15.20 per share, trumping Ant Financial’s bid of $ 13.25 per share.

MoneyGram (mgi) shares jumped soared in Tuesday trading.

Euronet said its offer for each MoneyGram common share and preferred stock, on an as-converted basis, valued the company at more than $ 1 billion, in addition to the assumption of about $ 940 million of MoneyGram’s debt outstanding.

Ant Financial Services Group, the payment affiliate of Chinese e-commerce firm Alibaba Group Holding Ltd, on Jan. 26 offered to buy all of MoneyGram’s common and preferred shares on a fully diluted basis in a deal valued at about $ 880 million. It said it would also assume or refinance MoneyGram’s outstanding debt.

Based on MoneyGram’s roughly 53 million outstanding shares, Euronet’s bid is valued at about $ 807 million, higher than Ant Financial’s offer of about $ 703 million, according to Reuters calculations.

Euronet said that unlike the Ant Financial deal, a Euronet-MoneyGram tie-up would not require a review by the Committee on Foreign Investment in the United States (CFIUS).

CFIUS, a U.S. inter-agency panel that reviews foreign acquisitions of domestic assets for national security concerns, has been a stumbling block for several Chinese deals in the Unites States.

Euronet is being advised by Wells Fargo Securities LLC and legal firm Gibson, Dunn & Crutcher LLP.

MoneyGram and Ant Financial were not immediately available for comment.

Mark Cooper

Mark Cooper

Mark Cooper is Political / Stock Market Correspondent. He has been covering Global Stock Markets for more than 6 years.