June 24, 2018 / 10:43 PM / 2 months ago

Hometown sweetens takeover bid for Australia's Gateway Lifestyle

(Reuters) - Australia’s Gateway Lifestyle Group (GTY.AX) said on Monday it received a sweetened A$713.8 million ($531 million), or A$2.35 a share, takeover offer from Hometown Australia Holdings Pty Ltd and Hometown America Communities Limited Partnership.

The revised bid came after Canada’s Brookfield Asset Management Inc (BAMa.TO) launched a A$698.6 million bid for the retirement village owner last week.

The new offer was 11.9 percent higher than Hometown’s original A$2.10 per share offer, and at a 1.3 percent premium to Gateway shares’ last close of A$2.32.

Hometown owned over 18 percent of Gateway securities as of Saturday, Gateway said in a statement, adding the revised proposal was subject to the same conditions as Hometown’s initial proposal earlier this month.

Gateway, which operates 50 retirement villages, often former caravan parks converted into communities for residents over 50 years old, reported a 2.8 percent rise in first-half net profit after tax to A$20.6 million.

Reporting by Chandini Monnappa in Bengaluru; Editing by Peter Cooney

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