Since late March, Ant Financial was reportedly considering to give a higher offer to acquire MoneyGram
Following the announcement of its plan to acquire US-based money transfer service MoneyGram, Ant Financial today confirmed that it has raised the agreed offer by 36 per cent, according to a Bloomberg report.
Ant Financial has been considering to raise its bid as part of its effort to compete with an offer by rival Euronet.
In a joint statement, Ant Financial and MoneyGram stated that the revised bid is worth US$18 per share in cash (the previous offer was US$13.25). The new deal values all common and preferred stocks at US$1.2 billion.
As a comparison, Euronet had offered US$15.20 a share.
MoneyGram itself will hold a special stockholder meeting to vote on the bid on May 16.
As previously reported, Ant Financial will be facing political and regulatory hurdles in its effort to complete the deal, as President Donald trump’s administration has been taking hard stance against Chinese investment in local US companies.
Members of the US House of Representatives have called upon the Committee on Foreign Investment in the US (CIFUS) to undergo “full and thorough” investigation on the proposed deal, citing “significant national security risks” as the main reason.
Ant Financial itself stated that it sought the CFIUS review and will continue working with MoneyGram to ensure that it is able to obtain “all required regulatory and shareholder approvals” to close the transaction later this year.
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