June 21, 2018 / 12:26 AM / in 5 months

Australia's Gateway Lifestyle receives bid from Canada's Brookfield

(Reuters) - Australia’s Gateway Lifestyle Group (GTY.AX) said on Thursday it had received a non-binding A$698.6 million ($514.7 million) offer from Canadian firm Brookfield Property Group, a unit of Brookfield Asset Management Inc (BAMa.TO).

The offer at A$2.30 a share represents a 7.5 percent premium to Gateway shares’ closing level on Wednesday, and trumps an earlier offer from Hometown Australia Holdings Pty Ltd and Hometown America Communities Ltd Partnership that valued the company at A$635 million, or A$2.10 per share.

Gateway said the offer could be reduced in relation to the value of any dividends or distributions the Australian retirement-home operator announced subsequently.

It said it would engage with Brookfield to determine if a binding offer would be in the interests of Gateway shareholders, and recommended shareholders take no action in the meantime.

The Canadian firm had agreed to a 12-month standstill on the acquisition of any Gateway Lifestyle securities.

Reporting by Rushil Dutta in Bengaluru; Editing by Stephen Coates

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