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UPDATE 1-Euronet Worldwide trumps Ant Financial's offer to buy MoneyGram
March 14, 2017 / 11:43 AM / 9 months ago

UPDATE 1-Euronet Worldwide trumps Ant Financial's offer to buy MoneyGram

(Adds details, shares)

March 14 (Reuters) - 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’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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