GLPI puts in $4.1B bid for Pinnacle's real estate

Wyomissing-based real estate investment trust Gaming and Leisure Properties Inc. has put in a $4.1 billion bid to buy the real estate holdings of Las Vegas-based gaming company Pinnacle Entertainment Inc.

GLPI is the offshoot REIT of Penn National Gaming Inc., which runs Hollywood Casino at Penn National Race Course in Dauphin County and about 20 other casinos across the country. In 2013, the two companies completed their separation.

If GLPI could make the transaction happen, it would have 36 properties in 14 states. That would make the REIT the third-largest publicly traded, triple-net REIT in the country, according to GLPI.

Pinnacle announced in November it intends to separate the company's operating assets from its real estate assets and form its own REIT.

However, GLPI Chairman and CEO Peter Carlino said that after four months, the company has not provided much information on the split, including a timeline. He said GLPI has approached Pinnacle about the acquisition previously, including a written proposal Jan. 16.

“That proposal went unanswered for many weeks during which time Pinnacle canceled scheduled meetings, avoided substantive dialogue, and refused to provide us basic non-competitive information,” Carlino said in a news release. “Very recently, Pinnacle offered to engage, but only on the condition that we enter into a highly restrictive and inappropriate non-disclosure agreement.

GLPI presented an enhanced offer to Pinnacle's board and management last week, Carlino said, but the company has “refused to engage,” leading GLPI to go public with the offer for Pinnacle shareholders to see.

“We believe the stone-walling and roadblocks impeding our efforts to enhance Pinnacle's separation should cease,” Carlino said. “We strongly urge Pinnacle's board and management to act in the best interests of its shareholders and engage without further delay.”

In an investor presentation, GLPI said it can close the deal this year. The presentation said Pinnacle has 15 properties in eight states.

GLPI trades on the NASDAQ at the ticker symbol GLPI, while Pinnacle trades on the New York Stock Exchange under the ticker symbol PNK.

Source: Central Penn Business Journal