U.S. electronic payments company MoneyGram International Inc has offered to share confidential information with peer Euronet Worldwide Inc, after the latter made a $1 billion acquisition offer, people familiar with the matter said, according to Reuters.
MoneyGram has found that Euronet's cash offer of $15.20 per share, which was unveiled last week, could be expected to result in a superior proposal compared with a deal it agreed to in January to sell itself to China's Ant Financial Services Group for $13.25 a share in cash, the people said on Sunday, March 19.
Before Euronet carries out its due diligence on MoneyGram, it will have to agree to the terms of a non-disclosure agreement, the people added. Negotiations on such a confidentiality pact may take several days, the people cautioned.
Euronet is then expected to take about a week going through MoneyGram's books before firming up its offer, the people said. MoneyGram will also receive information from Euronet that will allow it to better assess potential antitrust risks to such a deal, the sources added.
Should MoneyGram declare Euronet's bid superior, Ant Financial will have four business days to decide whether it wants to improve its offer.
The sources asked not to be identified because the deliberations are confidential. Euronet, MoneyGram and Ant Financial declined to comment.
Based in Dallas, MoneyGram is one of the biggest players in the global remittance market. An acquisition would enable Euronet to better compete against digital startups that are transforming the money transfer business.
Euronet has also argued that MoneyGram's focus on large retailers and national post offices, combined with Euronet's strong position with independent agents and its broad set of consumer payment solutions, would create a more valuable business.
Ant Financial, the financial services affiliate of Alibaba Group Holding Ltd (BABA.N), dominates China's online payment market and has been ramping up investment overseas amid fierce rivalry at home with peers such as Tencent Holdings Ltd's (0700.HK) popular WeChat Pay.