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