Portfolio

Moneygram shares rocket on rival buy-out offer

By Alexander Bueso

Date: Tuesday 14 Mar 2017

Moneygram shares rocket on rival buy-out offer

(ShareCast News) - Shares in MoneyGram International vaulted higher after Euronet Worldwide offered more for the company than rival Ant Financial Services, rising past the new offer price tabled.
Euronet's bid was worth $15.20 a share in cash, plus the assumption of $940.0m in debt, compared to the $13.25 a share bid which the US money transfer specialist had agreed to in January with Ant Financial Services.

It was also 20% above where Money Gram's shares had been trading during the previous session and 28% higher than were they were prior to the Ant Financial announcement.

Euronet claimed its offer provided significant benefits for Moneygram shareholders relative to Ant Financial's bid, including certainty regarding closing with no CFIUS requirement as well as the fact that no conditions would be placed in relation to receipt of the money transmitter licenses.

"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," Euronet said in a statement.

The mooted transaction would also provide "meaningful" earnings accretion post-close and was expected to generate cost synergies of roughly $60.0m in the second year after closing.

As of 1323 GMT shares in MoneyGram were 27.17% higher to $16.05.

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