Euronet Worldwide proposed an acquisition in which it would pay $15.20 in cash for each Moneygram share. The proposal values Moneygram shares at a 15% premium to a takeover bid by Ant Financial, which made an acquisition bid of $13.25 per Moneygram share in January.
Euronet Worldwide believes that its offer is better for Moneygram shareholders. Unlike Ant Financial, a deal with Euronet would not need to be reviewed by the Committee on Foreign Investment in the United States, nor would there be any closing condition related to whether or not the company could take control of certain money transmitter licenses.
In a presentation to detail its offer, the company noted that it had committed financing from Wells Fargo, and that it believed it could close by the end of 2017.
Wall Street seems to think that Euronet's offer may kick off a bidding war. Shareholders are willing to pay a premium to potentially catch a quick gain if Ant Financial comes back to make an improved offer.
At a recent price of $15.78 per share at 11:30 a.m. EDT on Tuesday, Moneygram shares traded at a 3.8% premium to Euronet's offer. Prior to Euronet's proposal, Moneygram shares closed at $12.66 per share, a 4.4% discount to Ant Financial's bid.