Stellar Development Foundation, a nonprofit organization, is cooperating with global private equity firm Advent International on a possible acquisition of remittance company MoneyGram.
Specifically, according to a Bloomberg report on Wednesday, Stellar has contacted MoneyGram International about a possible purchase.
As a fun fact, it is not yet clear how the acquisition talks will play out. But if the deal goes through, it would be a major milestone for Stellar.
As a consequence, MoneyGram International shares rose after Bloomberg reported that various parties were interested in acquiring the company.
MoneyGram has received preliminary takeover interest from Stellar Development Foundation, which oversees a network for facilitating cross-border payments, and private equity firm Advent International https://t.co/cwuuGIjjBG
– Bloomberg (@business) July 21, 2021
To recall, Western Union made a takeover offer last year. And Ant Group, the Chinese financial firm, tried to buy MoneyGram for $ 1.2 billion in 2017. But US regulators blocked the deal, due to national security concerns.
MoneyGram and Ripple
It should be noted that in June 2019, Ripple acquired the shares of MoneyGram at a price of $ 4.10 per share. After the investment, Ripple owned 9.95% of MoneyGram’s outstanding common shares.
To which Alex Holmes, CEO of MoneyGram said: “The partnership is transformative.”
Incidentally, in 2020, Ripple sold about a third of its stake in remittance giant MoneyGram. All this, according to a document published by the United States Securities and Exchange Commission (SEC). It should be noted that it was his first share sale since he invested in MoneyGram in 2019.
According to the document, on November 25, Ripple Labs entered into an agreement with MoneyGram. Basically, under which you have the right to sell up to 4 million shares.
According to a Ripple spokesperson: “This was a purely financial decision, to make some profit on Ripple’s investment in MoneyGram. And it is in no way a reflection of the current state of our association.
The association ends!
In particular, remittance giant MoneyGram ended its association with Ripple in March this year. After the United States Securities and Exchange Commission (SEC) took Ripple to court for its alleged illegal sales of XRP.
“We are proud of the work we were able to do in a short period of time. As well as the impact we were able to achieve by bringing this unique product of its kind to market. We are both committed to reviewing our relationship in the future. “
By way of closing, Stellar and Ripple have been in a rivalry for years. In fact, could the possible acquisition of MoneyGram reignite this rivalry even more? Leave your opinion in the comment box.
I retire with this phrase from Laurence Sterne: “The thirst for knowledge, like the thirst for wealth, always increases with its acquisition.”
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