MoneyGram stock drops as Madison Dearborn sale not expected to close until late in Q2

MoneyGram (NASDAQ:MGI) fell 7% after a Friday replace the corporate’s deliberate sale to Madison Dearborn wasn’t anticipated to shut till the late within the second quarter.

MoneyGram made the disclosure on Friday in a 10-Q filing. MoneyGram (MGI) mentioned in February when it reported its This autumn outcomes that it deliberate to complete th e sale by the end of Q1/early Q2.

“In gentle of the timing and elements mentioned above, the events now anticipate to shut the merger late within the second quarter of 2023,” MoneyGram mentioned within the 10-Q submitting on Friday after the shut.

Buyers have been ready any replace on the deliberate sale to Madison Dearborn, which wants approval from regulators in India. M&A traders have turn into extra frightened on the deal as a Could 14 termination deadline approaches. An in depth in late Q2 could be after the termination date.

MoneyGram (MGI) shares have seesawed in latest weeks because the the Could 14 deadline approaches. The inventory rose 4.6% on Friday, probably the most for the reason that deal was introduced in February of final 12 months, as hypothesis circulated amongst merchants that some announcement was expected soon.

MoneyGram (MGI) agreed to be bought to Madison Dearborn for $11/share in February of final 12 months.