MENU

Gateway Lifestyle Group (ASX:GTY) share price rises 6% on another takeover offer

The Gateway Lifestyle Group (ASX: GTY) share price has risen 6.3% today after receiving another takeover offer, this one is from Brookfield. That’s the same Brookfield that just offered to acquire Healthscope Ltd (ASX: HSO), or at least buy its real estate assets.

Readers may remember that Gateway only recently received a takeover offer from Hometown, which is a retirement village operator in the US.

Brookfield Property Group has offered $2.30 per share for all of the shares of Gateway. The offer is (or was?) confidential, indicative and non-binding. The offer will be reduced by any dividends or distributions declared by Gateway in the meantime.

The Board of Gateway said that considering the Brookfield offer is superior to the Hometown offer, the Board will engage with Brookfield to see if a binding offer can be put to securityholders.

Gateway will allow Brookfield a six-week period due diligence period. Of course, there is no guarantee that this will result in a transaction taking place.

This offer looks pretty attractive for securityholders. I’ve been quite interested in owning Gateway shares for quite a while because it has a good long-term tailwind due to the ageing demographics. Plus, there is a housing affordability issue. Gateway has the most sustainable fees in the industry.

Gateway could create good growth due to the rental price increase it can implement thanks to the aged pension and national rental increases.

Foolish takeaway

There is a good chance that this offer will be accepted by Gateway. So, if I owned shares I’d be considering selling at this point.

If I did sell Gateway shares, then I’d want to put the money back to work in the share market by buying these top stocks.

4 Stocks for Building Wealth

Renowned investor Scott Phillips just released a brand-new report detailing his 4 favourite stocks to buy right now.

And I don’t know about you, but I always pay attention when some of the best investors in the world give me a stock tip.

This is your chance to get in at the very beginning of what could prove to be very special investments.

Click here to get started today!

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The 5 mining stocks we’re recommending in 2019…

For decades, Australian mining companies have minted money for individual investors like you and me. But if you believe the pundits and talking heads on TV, those days are long gone. Finito! Behind us forever…

We say nothing could be further from the truth. To earn the really massive returns, you’ve got to fish where others aren’t fishing—and the mining sector could be primed for a resurgence. That’s why top Motley Fool analysts just revealed their exciting new research on 5 ASX miners they believe could help you profit in 2019 and beyond…

Including:

The best way we see to play the global zinc shortage… Our #1 favourite large-cap miner (hint: it’s not BHP)… one early-stage gold miner we think could hit the motherlode… Plus two more surprising companies you probably haven’t heard of yet!

For free access to our brand-new research, simply click here or the link below. But be warned, this research is available free for a limited time only, and we reserve the right to withdraw it at any time.

Click here for your FREE report!