MGI - MoneyGram drops as investors await update on Madison Dearborn sale

2023-04-26 12:35:44 ET

MoneyGram ( NASDAQ: MGI ) fell 2.4% as investors continue to await any update on the company's planned sale to Madison Dearborn.

Investors are awaiting any update on the sale to Madison Dearborn, which needs approval from regulators in India. M&A  investors appear to be come more skittish on the deal as a May 14 termination deadline approaches.

MoneyGram ( MGI ) and Madison Dearborn didn't immediately despond to Seeking Alpha email request for comment.

The MoneyGram ( MGI ) stock drop on Wednesday comes as the UK antitrust authority blocked Microsoft's ( MSFT ) planned $69 billion acquisition of Activision ( ATVI ), which came as a surprise to some risk arb investors and the weakness in MoneyGram may be due to "risk-off."

Earlier this month there was a report that circulated that MoneyGram ( MGI ) could potentially look for ways to close around the Indian approval.

MoneyGram ( MGI ) said in February when it reported its Q4 results that it planned to complete th e sale by the end of Q1/early Q2 . The transaction has received regulatory approvals except for international money transmission regulatory approval from the Reserve Bank of India.

MoneyGram ( MGI ) agreed to be sold to Madison Dearborn for $11/share in February of last year.

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