GTY’s CEO has accepted the offer by Hometown: Gateway Lifestyle Group’s (ASX: GTY) stock fell 0.44% on September 28, 2018 after the company received the fourth supplementary Bidder’s Statement from Hometown Australia Management regarding the takeover of GTY.
GTY, an Australian owned and operated company, is engaged in the development and operations of manufactured homes in Australia. As of June 30, 2018, the company had 58 residential land lease communities primarily located in New South Wales, Queensland, Victoria, South Australia, and the Australian Capital Territory. GTY has received the fourth supplementary Bidder’s Statement from Hometown Australia Management, which is off-market takeover offer for all the stapled securities of Gateway at the Offer consideration of $2.25 cash per stapled security. The offer by Hometown has been said to be the final one while the price will be reduced by any distributions/ dividends announced by Gateway going forward. An offer price of $ 2.25 per Gateway stapled security has been made and this is at a premium to GTY’s trading price before the proposal from Hometown. Hometown has a relevant interest in 48.13% of Gateway stapled securities and GTY’s Executive Director and CEO, Trent Ottawa, has accepted the Offer in respect of 10,825,878 Gateway stapled securities owned or controlled by him. GTY’s Directors plan to accept the Offer with regard to the Gateway Securities they own or control, in the absence of a superior proposal. Once they are confident that all the conditions to Hometown’s Offer, comprising of the 50% minimum acceptance condition, have been satisfied or waived. The offer is scheduled to close on 8 October 2018.
Moreover, there might be a fall in price of GTY’s stapled securities and these may trade at a discount to the offer price. Meanwhile, GTY stock has fallen 6.64% in three months as on September 27, 2018.
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