July 2, 2018 / 12:45 AM / 2 months ago

UPDATE 1-Hometown America drops due diligence condition for Gateway Lifestyle offer

(Adds background on Brookfield, earlier offers)

July 2 (Reuters) - Hometown America adjusted 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.

The bid implementation deal would contain features including a unanimous commitment by Gateway’s board to recommend the bid, Hometown said.

Gateway agreed to an exclusive due diligence by Brookfield Property Group, a unit of Canadian alternative asset manager Brookfield Asset Management Inc, which made a non-binding A$2.30-a-share offer for Gateway on June 21.

Brookfield’s offer trumped an earlier offer from Hometown of A$2.10 per share.

Investing in the retirement sector is viewed by analysts as a means to profit from Australia’s ageing population and tap generous government subsidies offered to pensioners.

$1 = 1.3521 Australian dollars Reporting by Aaron Saldanha in Bengaluru; Editing by Stephen Coates

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below