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MoneyGram's shares jumped about 22.6 percent to $15.52 in
premarket trading. Euronet Worldwide shares were untraded.
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.
(Reporting by Sruthi Shankar and Anya George Tharakan in
Bengaluru; Editing by Savio D'Souza)
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