The merger between MoneyGram and its prospective buyer, venture capital firm Madison Dearborn Partners (MDP), is now anticipated to close “late in the second quarter of 2023,” according to the company’s quarterly report released on Friday.
In a January update on the planned sale, MoneyGram said that the merger agreement with MDP will be finalized by the end of the first quarter or the beginning of the second.
The company justified the delay in its quarterly report, which was released on Friday, by stating that it was awaiting the Reserve Bank of India (RBI), which awarded MoneyGram’s Money Transfer Service Scheme (MTSS) license in India, to give its final regulatory clearance.
“Since the company and MDP signed the merger agreement, the RBI issued a new circular covering approval requirements related to Payment System Operators (PSO) such as the company,” MoneyGram reported in its quarterly report.
“The merger is one of the first PSOs to be sold since the circular was issued.” As a result, the procedure has been taking longer than expected. MoneyGram remains in constant conversation with the RBI and the Central Government of India about its merger evaluation.”
As previously reported on Wednesday (April 26), investors were already concerned about MoneyGram as they awaited an update on the status of the anticipated transaction.
The investors’ concern was heightened by recent news that Microsoft’s proposed acquisition of Activision had been halted by UK regulators, according to Seeking Alpha on Wednesday.
