E-payment platform operator Euronet Worldwide Inc. offered $15.2 in cash for every outstanding share of MoneyGram International Inc., also listed on the Nasdaq. The bid launched on Tuesday values the target entity at more than $1 billion and compares to $13.25 per share or $880 million in total prepared by Ant Financial Services Group, according to an offer Alibaba Group Holding Ltd.'s financial technology giant announced on January 26.
The $940 million in outstanding debt of MoneyGram, headquartered in Dallas, would also be assumed by Euronet, its press release said. "The offer also represents a premium of approximately 38% to MoneyGram’s volume-weighted average share price over the three month period prior to the Ant Financial transaction announcement. The proposal offers stockholders a clear and significantly more certain path to a faster closing with no required review by the Committee on Foreign Investment in the United States (CFIUS) and no closing condition related to securing change of control consents covering money transmitter licenses in the jurisdictions in which MoneyGram operates," the Kansas-based company said.
Euronet added its four transfer platforms operate mostly with independent agents, indicating the business is complementary with MoneyGram's focus on large retailers and national post offices. The estimated synergies in the second year after the execution of the deal are larger than $60 million, the statement said.
