NEW YORK (AP) – Gaming and Leisure Properties, the casino property owner, said Monday that it offered to buy the real estate assets of Pinnacle Entertainment.
Shares of both companies rose sharply in afternoon trading.
Pinnacle is in the midst of splitting into two separate businesses: one that owns the real estate assets of its casinos and another that operates the casinos and rents properties from the real estate company.
Gaming and Leisure Properties said it first offered to buy Pinnacle’s real estate assets in January. It went public with the offer Monday because Pinnacle refused to have discussions, Gaming and Leisure Properties said.
Pinnacle said in a statement late Monday that it is reviewing the offer from Gaming and Leisure Properties.
Under the proposed deal, Pinnacle shareholders would receive about $36 in assets for each share they own, or about $2.17 billion. Including debt, Gaming and Leisure Properties said the deal is worth about $4.1 billion. Pinnacle shareholders would receive one share of Pinnacle’s casino operation business and 0.5517 shares of Gaming and Leisure Properties for each Pinnacle share they own.
If the deal goes through, Gaming and Leisure Properties would own the properties in which Pinnacle operates.
Gaming and Leisure Properties, headquartered in Wyomissing, Pennsylvania, is a real estate investment trust that owns casino properties that it leases to casino operators. Las Vegas-based Pinnacle owns and operates 15 casinos, including the Ameristar chain.
Shares of Gaming and Leisure Properties Inc. rose $3.72, or 11.5 percent, to $36.10 in afternoon trading. Shares of Pinnacle Entertainment Inc. rose $4.28, or 15.6 percent, to $31.70.
Copyright 2015 The Associated Press.
