A new suitor has emerged for the hand of MoneyGram (NASDAQ: MGI). The payments facilitator has received an offer from peer Euronet Worldwide (NASDAQ: EEFT) to buy it out in a deal valued at roughly $955 million.
Euronet Worldwide's bid breaks down to $15.20 per MoneyGram share in cash. Additionally, the would-be acquirer has offered to assume around $940 million of the company's outstanding debt. That per-share amount is nearly 30% higher than MoneyGram's stock price on the day before the earlier offer from Ant Financial, China's largest online payments facilitator, was made public.
MoneyGram has not yet publicly responded to the bid.
It's certainly mulling it over, as the offered amount tops the 13.25 per share takeover bid of Ant Financial, which the company had accepted in January. That deal is valued at around $880 million.
In the press release detailing its offer, Euronet Worldwide cited several reasons why MoneyGram should accept its proposal over that of Ant Financial. Among other factors, it will have an easier time winning regulatory approval, as (despite its name) Euronet Worldwide is a U.S.-based company. "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," the company said, "and no closing condition related to securing change of control consents covering money transmitter licenses in the jurisdictions in which MoneyGram operates."
Euronet Worldwide also cited the "complimentary" business profiles of the two companies, the track record of its management, and its "impeccable record of compliance."
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