- Alibaba Group’s (BABA.NYSE) finance affiliate Ant Financial has raised its takeover offer price for US-based MoneyGram (MGI.NASDAQ) by 36% from US$ 13.25 per share to US$ 18 per share, as reported by Sina HK. The updated total transaction amount is around US$ 1.2 billion.
- MoneyGram’s board has approved the takeover deal.
Why It Matters:
- In January, Ant Financial announced that it had reached a takeover agreement with MoneyGram at a price of US$ 13.25 per share, or US$ 880 million in total. However, in March, US-based Euronet Worldwide offered to take over MoneyGram for US$ 15.2 per share, representing a 15% premium.
- Ant Financial is the finance affiliate of China’s largest e-commerce firm, Alibaba Group. Ant Financial mainly operates online payments and related businesses such as the provision of credit ratings.
- Founded in 1940, MoneyGram International Inc. is a money transfer company based in the United States and has branches in more than 30 countries. This deal is very important to Ant Financial for its expansion in the US market and its IPO plans.