Australian manufactured home operator Gateway Lifestyle has recommended that its shareholders accept Hometown’s AUD683m (€437.6m) takeover offer.

Gateway released a report of an independent expert which concluded that the AUD2.25 per share offer made by the US manufactured home company was fair and reasonable.

“As at this date, Hometown’s offer is the only takeover offer capable of acceptance by Gateway securityholders,” Andrew Love, chairman of Gateway Lifestyle, said in a statement.

Love said directors intended to accept Hometown’s offer, which is due to close on September 10.

Gateway previously rejected Hometown’s initial bid as “too low”, before Brookfield emerged as a rival bidder. Hometown then increased its bid to AUD713m, but with greater requirements.

Gateway failed to agree to the requirements and Hometown has since reverted to its original offer. 

Last Friday, Hometown said its bid was its “best and final” offer, after withdrawing the higher conditional offer

Earlier today, Gateway reported a 2.5% drop in net profit to AUD58.2m for the fiscal 2018 year ended June 30 compared with the year earlier. Its shares closed down almost 1.8% at AUD2.22.