Moneygram International (NASDAQ:MGI) stock is taking off on Tuesday after the company announced plans to go private.
Let’s go over everything investors in MGI stock need to know about this news below!
- Moneygram International is going private due to a deal with private equity firm Madison Dearborn Partners.
- This will have the firm paying out $11 per share in cash to holders of MGI stock.
- That has the total value of the deal sitting at $1.8 billion.
- This is due to Moneygram’s debt of $799 million, which Madison Dearborn Partners will be refinancing.
- The offer price also represents a nearly 23% premium over the stock’s closing price on Monday.
- However, it’s a roughly 50% premium to the stocks’ closing price on Dec. 14, 2021.
- That was the last day of trading prior to media speculating about a potential deal.
- Goldman Sachs, Deutsche Bank Securities, and Barclays provided Madison Dearborn Partners with the funds for the deal.
- Moneygram International and the private equity firm are expecting the deal to close in the fourth quarter of 2022.
- Before that, customary closing conditions have to be completed.
- That includes getting approval from regulators, as well as investors in MGI stock.
- When the deal closes, the current leadership team will continue to head the company.
- It will also continue to operate out of its headquarters in Dallas, Texas.
- In relation to the deal, Moneygram International has canceled its conference call for its fourth quarter and full-year 2021 results.
- That call was going to take place on Feb. 25 before markets opened.
MGI stock is up 19.3% as of Tuesday afternoon.
There’s more stock market news for investors to read about below!
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.