(Reuters) - Australian retirement village owner Gateway Lifestyle Group <GTY.AX> on Tuesday rejected Hometown America's revised takeover bid offering A$695 million ($514 million) in cash, saying it was not in the best interest of the company and its shareholders.
Earlier this month, Hometown America had offered to drop due diligence if Gateway agreed to its offer.
Hometown in a separate statement confirmed it is not "proceeding with the conditional 5 cent price increase to its takeover offer for Gateway."
The revised offer had come after Gateway agreed to grant an exclusive due diligence to Canada's Brookfield Property Group, which made a non-binding A$2.30-a-share offer for Gateway on June 21, trumping an earlier offer from Hometown.
Australia's wealthy and ageing population has boosted demand for exposure to the country's retirement sector.
(Reporting by Aditya Soni in Bengaluru; Editing by Sunil Nair)
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