Gaming and Leisure Properties Inc. (GLPI), which leases real estate to casino operators, raised its offer for Pinnacle Entertainment Inc.’s real estate assets to $5 billion.
Under the terms of the new offer, which it called its final effort, GLPI values all of Pinnacle at $47.50 per share, a 54% increase from previous offers valued at $36 per share.
Pinnacle shareholders would also hold a 28% stake in GLPI, and control all of the operating business that would be spun off.
“GLPI has committed financing in place and is ready to finalize this transaction immediately, and we would expect to close our transaction within approximately six months of signing. Nevertheless, Pinnacle continues to make new demands, delaying the signing of a definitive agreement and denying its shareholders a value-creating transaction that is clearly superior to Pinnacle’s previously announced standalone separation plan,” said GLPI in a letter sent to Pinnacle’s board of directors.
The company also said it had secured “committed financing” and is ready to finalize the deal immediately.
Pinnacle confirmed that it has received GLPI’s revised proposal and would respond promptly once the review is completed.
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.
In March, GLPI announced that it had offered to buy Pinnacle’s real estate assets at $4.1 billion, including debt.
Pinnacle’s stock rose $2.18, or 5.8%, to close at $39.64 on Tuesday. GLPI’s shares fell 95 cents, or 2.6%, to $35.72.