Pinnacle Entertainment in talks to sell real estate to GLPI

Pinnacle Entertainment confirmed it’s engaged in “productive discussions” with Gaming and Leisure Properties regarding the potential sale of its real estate assets.

“Pinnacle's Board and management team are committed to maximizing value for the benefit of Pinnacle shareholders,” it said in a release, adding there can be no assurance of a successful outcome.

GLPI has been seeking to convince Pinnacle to sell the assets for several months and in April made an offer of about $40 a share, valuing the portfolio at $2.4 billion, according to the Wall Street Journal. That was up from an earlier bid of $36 a share.

Las Vegas-based Pinnacle owns 15 gambling properties, with brands including Ameristar and L’Auberge, in Colorado, Indiana, Iowa, Louisiana, Mississippi, Missouri, Nevada and Ohio.

Under shareholder pressure, Pinnacle in November announced a plan to split into two public companies in 2016: a real-estate investment trust, or REIT, and another company housing its casino operations.

MGM Resorts is facing pressure from activist investors to follow a similar path.

 

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