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.
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.
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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.