Casino operator Pinnacle Entertainment
confirmed Monday that it is in talks to sell its real estate assets to Gaming and Leisure Properties Inc. (GLPI).
Pinnacle also said in a statement that it is looking into maximizing value for shareholders though no assurances could be made that the talks would produce a transaction.
“We are impressed with the results they continue to achieve,” said Peter Carlino, chief executive officer and chairman of GLPI. “They have been very cordial and professional in our dealings with them and are a team that we would very much like to partner with not only on this transaction but on future opportunities as well.”
In March, casino property owner GLPI announced that it had offered to buy Pinnacle’s real estate assets at $4.1 billion, including debt. At the time, Pinnacle said it would review the offer.
Under the proposed deal, Pinnacle shareholders would receive about $36 in assets for each share they own, around $2.17 billion in total. Pinnacle shareholders would receive one share of Pinnacle’s casino operation business and 0.5517 shares of GLPI for each Pinnacle share they own.
GLPI made public its offer for Pinnacle’s real estate in March after the two sides failed to agree on negotiating terms. It raised its bid in April to just over $40 a share, or about $2.4 billion.
Pinnacle owns 15 gaming properties, including the River City Casino in south St. Louis County and the Ameristar Casino in St. Charles. The company announced plans in November to split into two public companies — a real estate investment trust and a separate company for its casino operations.
The Wyomissing, Pennsylvania-based GLPI is a real estate investment trust that owns casino properties that it leases back to casino operators.
