Rival offer for Gateway hits table
THE takeover battle for Gateway Lifestyle Group is coming to a head with US giant Hometown formally launching its offer for the $700 million manufactured home estates company.
Hometown yesterday lodged a conditional, offmarket cash takeover bid at $2.25 per share for Gateway, which could be sweetened if it wins a recommendation from the target’s board.
Hometown would then be willing to increase the offer price to $2.30 per share and allow shareholders to keep a 0.0535c dividend payment made late last month.
The initial headline proposal sits below the indicative proposal of $2.30 per share made by Canada’s Brookfield.
That deal was offered under the condition it would be lowered by any dividends paid by Gateway, meaning it translates to about $2.24 per share.
Brookfield remains well positioned as it was granted exclusive due diligence by the Gateway board last week.
Hometown’s bid is being viewed as an attempt to allow Gateway to engage with it.
Investors may be drawn to the Hometown offer as it does not require due diligence and the US group already has an 18 per cent stake in the target company.
Hometown specialises in developing and owning manufactured home estates, an area emerging as a crucial low-cost part of the retirement sector.