According to the company’s quarterly report released on Friday, MoneyGram and its intended purchaser, venture capital firm Madison Dearborn Partners (MDP), now anticipate the merger to close “late in the second quarter of 2023.”
The merger agreement with MDP will be finalized by the end of the first quarter or early in the second quarter, according to a January update from MoneyGram on the planned sale.
The company justified the delay in its quarterly report, released on Friday, by stating that it was awaiting final regulatory clearance from the Reserve Bank of India (RBI), the body responsible for issuing MoneyGram’s Money Transfer Service Scheme (MTSS) license in India.
“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.
