Gaming & Leisure Properties Offers To Buy Pinnacle Entertainment Assets For $4.1 Bln

Gaming and Leisure Properties Inc. said Monday it is offering to buy the real estate assets of Pinnacle Entertainment Inc. in a deal worth $4.1 billion, including debt. GLPI said the offer is aimed at enhancing Pinnacle's plan announced in November 2014 of separating its operating business and real estate assets. Pinnacle has refused to engage with GLPI, which is now taking its offer directly to investors, GLPI said in a statement. The company said the real estate entity that would result from its offer would be third-biggest triple-net Real Estate Investment Trust by enterprise value. Pinnacle shareholders would receive shares with an aggregate value of $36 a share, or a 30% premium over Pinnacle's closing price on March 6. "In contrast to the major risks, contingencies and delays which we believe are inherent in the Pinnacle standalone plan," GLPI Chief Executive Peter Carlino said in a statement, "GLPI's straightforward proposal has a much faster path to completion and much less risk going forward." Pinnacle shares surged 20.4% in premarket trade, while GLPI shares were up 4.7%.