MoneyGram provides update on acquisition by MDP

MoneyGram provided an update on its agreement to be acquired by funds affiliated with Madison Dearborn Partners – MDP -. All regulatory approvals that are conditions to closing have been received except for one international money transmission regulatory approval to be issued by the Reserve Bank of India, or RBI. Since the company and MDP signed the Merger Agreement, the RBI issued a new Circular covering approval requirements related to Payment System Operators such as the company. As a result, the process has been taking longer than originally anticipated. Last week, the Central Government informed MoneyGram that it would take some additional time to complete its work in preparing its approval of the Transaction. Once this final international money transmission regulatory approval is obtained, the parties will engage in a financing marketing period which may last for as long as fifteen consecutive business days. Closing would occur within a matter of days after completing the marketing period. As a result, the parties have agreed to extend the End Date beyond February 14. The parties now expect to close the transaction either late in Q1 or early in Q2.