July 2 (Reuters) - Hometown America sweetened its takeover bid for Australian retirement village owner Gateway Lifestyle Group on Monday, offering to drop due diligence if the target agreed to its A$695 million ($514 million) cash offer.
Hometown said its bid, at A$2.30 cash-per-share, was superior to an identically priced offer from Canadian private equity firm Brookfield Asset Management, because Gateway had promised to pay out a 5.35 Australian cents dividend during the bidding contest.
Hometown’s cash offer would slip to A$2.25-a-share if Gateway was unwilling to sign a bid implementation agreement at the higher price. Gateway said it was considering the offer.
$1 = 1.3521 Australian dollars Reporting by Aaron Saldanha in Bengaluru; Editing by Stephen Coates