Ant Financial’s proposal for MoneyGram assets fades against offering of Euronet Worldwide

14 March 2017

Ant Financial may be left in the basket in the deal to acquire the remittance business of MoneyGram International as Euronet Worldwide is going to upstage its competitor by offering larger amount of cash in the potential transaction. Offering of Alipay unit amounted to $13.25 per share of MoneyGram International while proposal of Euronet proposed to purchase all shares outstanding for $15.20 in cash which means the company is estimated at over $1 billion.

Apart from the premium amount Euronet offers to pay MoneyGram’s debt outstanding that accounts for about $940 million. The offering of Euronet is about 15% higher than that of Ant Financial’s and 28% excess over $11.88 per share price closed for MoneyGram on the day of Ant Financial’s proposal, making the market value of the company at $630 million.

Compared with the amount proposed back in 2007 the current offering of Euronet is significantly lower. At that time MoneyGram was offered an unsolicited sum of $1.65 billion for the acquisition.

In January, anonymous reports unveiled that Chinese payment services operator, an affiliate company of Alibaba had plans to acquire the US-based MoneyGram International Inc in its ambitious pursuits to further expand into international markets.

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