MoneyGram has postponed the date of its planned sale.
Source: Pixabay.com
This firm and the prospective buyer, venture capital firm Madison Dearborn Partners (MDP), expect that the merger process will be completed at the end of the second quarter of this year. The relevant information is contained in the quarterly report, which was published by MoneyGram last week.
In January, data was published according to which the merger process was to be completed at the end of the first quarter or at the beginning of the second quarter of 2023. The terms of the transaction were postponed due to the expectation of final regulatory approval by the Reserve Bank of India (RBI), which is the issuer of the MoneyGram license for Money transfer Services (MTSS) in the Indian financial market.
The RBI has issued a new circular covering approval requirements related to payment system operators (PSO). The merger will be one of the first PSOs to be sold since the publication of this circular. The process will take longer than originally expected. MoneyGram continues to have an active dialogue with the RBI and the Central Government of India regarding the merger consideration.
Investors have already expressed uncertainty about MoneyGram, as they knew that the status of the planned sale would be changed. The concern of the owners of investment funds intensified after the planned acquisition of Microsoft Activision was blocked by regulatory authorities in the UK.
MoneyGram announced the planned acquisition of MDP in February last year. Then the deal amount of $1.8 billion was announced.
Alex Holmes, CEO and Chairman of the Board of MoneyGram said in 2022 that the partnership with MDP and the transformation of the firm into a private company provide new opportunities for the introduction of innovative solutions and business transformation to become a leader in cross-border payments and provide a wider set of digital offerings while using a global platform.
MoneyGram became the object of acquisition amid competition from firms such as Remitely and Revolut. At a certain point, the company’s ability to benefit from payments and money transfers faced an obstacle in the form of strong competitors.
MoneyGram is an American financial company. The firm was founded in 1940. The company is headquartered in Dallas. The firm currently provides financial services in more than 200 countries. MoneyGram has a global service network that includes more than 345 thousand offices and representative offices. In 2014, the firm was the second-largest money transfer provider in the world.
As we have reported earlier, FTC Distributes $115 Million to Victims of MoneyGram Payment Fraud.
