Pinnacle Entertainment Inc’s real estate has been offered a new price by Gaming & Leisure Properties Inc., up to a share, which puts the total at .4 billion for the real estate. An initial offer from GLPI was for per share, but after a “failure to engage in talks”, GLPI went a little hostile.
As of last week, Pinnacle had a market capitalization of $2.05 billion. The offer for $36 per share valued its real estate at $4.1 billion, which includes the assumed debt.
The purchase would also remove the risks associated with Pinnacle’s plan to split its real estate and operating assets into two separate companies. The sale, if it were to happen, would be for 15 casinos, while Pinnacle would continue to operate them. GLPI, itself, is a spin off of Penn National Gaming Inc.
