US manufactured home company Hometown has told its Australian takeover target, Gateway Lifestyle, that its off-market offer of AUD683.4m (€437m) is “best and final”.

Gateway, an Australian manufactured home operator, told the Australian stock exchange today that Hometown will pay AUD2.25 per security in cash, in the absence of a competing bid.

Gateway 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. 

An investor and fund manager, speaking under anonymity, said Hometown had effectively wanted immediate control of the company in return for the higher bid.

“Hometown wanted Gateway to seek its approval on such matters as acquisitions in the running of the business even before it had shareholder approval for its bid,” the investor told IPE Real Assets.

Gateway has informed the Australian Securities Exchange that Hometown’s replacement bid – which will close on 10 September – is now open to acceptance by shareholders.

Hometown said the offer “represents a very material premium of 28.5% over the last undisturbed security price prior to our initial approach”, and a premium of 48% to Gateway’s net tangible assets.

“We consider this to be our best and final offer price, subject to a competing proposal, and encourage Gateway security holders to accept the offer as soon as possible.”