Pinnacle Entertainment has confirmed it is engaged in “productive discussions” with Gaming and Leisure Properties, Inc. (GLPI), the real-estate investment trust owned by Penn National Gaming, regarding a potential acquisition of Pinnacle’s real estate assets.
“Pinnacle’s board and management team are committed to maximizing value for the benefit of Pinnacle shareholders,” said a statement from the company. “Pinnacle noted that there can be no assurance that a transaction will result from these discussions. Pinnacle does not intend to make any additional comments regarding this matter until there is something definitive to report.”
Skadden, Arps, Slate, Meagher & Flom LLP and Gibson, Dunn & Crutcher LLP are acting as Pinnacle’s legal advisors, and Goldman, Sachs & Co. is serving as its financial advisor.
Pinnacle owns and operates 15 gaming entertainment properties, located in Colorado, Indiana, Iowa, Louisiana, Mississippi, Missouri, Nevada and Ohio. Pinnacle holds a majority interest in the racing license owner, as well as a management contract, for Retama Park Racetrack outside of San Antonio, Texas.
GLPI is a self-managed Pennsylvania REIT and a wholly-owned subsidiary of Penn National Gaming, Inc. GLPI owns substantially all of the assets associated with the real property interests related to Penn’s gaming operations. Penn leases the real estate assets of 18 facilities.
Gaming and Leisure Properties CEO Peter Carlino told the Associated Press the company has held “very productive, substantive discussions” with Pinnacle.
“We are impressed with the results they continue to achieve,” said Carlino. “They have been very cordial and professional in our dealings with them, and are a team that we would very much like to partner with not only on this transaction but on future opportunities as well.”
