MoneyGram offers to acquire Euronet Worldwide for $1 billion

In January, China’s Ant Financial Services Group had bid $13.25, in a cash deal for Euronet Worldwide, whereas MoneyGram has offered $15.20 for Euronet. Ant Financial Services has now four days to revise its offer.

Sources familiar with the matter have disclosed, MoneyGram International Inc. has agreed to share confidential information with its peer Euronet Worldwide Inc. following a $1 billion acquisition bid made by it.

Euronet’s takeover bid, which was unveiled last week, could result in MoneyGram receiving a better deal to the one it agreed to in January, when it decided to sell itself to China based Ant Financial Services Group for $13.25 a share in cash, said the sources.

However before Euronet is able to carry out its due diligence for the acquisition, it will have to sign on the dotted lines for a non-disclosure agreement (NDA), negotiations for which make take upto several days.

Having signed the NDA, Euronet is expected to take a week to go through MoneyGram’s books, before it firms up its buying offer, said the people who are familiar with the matter at hand.

Furthermore, after the signing of the NDA, MoneyGram will also receive information from Euronet which will allow it to better assess the potential antitrust risk, said sources.

If MoneyGram were to declare Euronet’s bid as superior to that of Ant Financial Services’, the China based group will have four days to revise its offer.

Sources preferred the cover of anonymity since deliberations are ongoing and are thus confidential.

Ant Financial, Euronet and MoneyGram declined to comment.

In the event of MoneyGram abandoning the deal for another bid, it will have to pay Ant Financial $30 million as a termination fee.

 

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