Gaming and Leisure Properties is a real estate investment trust that recently increased their offer to buy Pinnacle Entertainment’s land holdings. An announcement on July 7, 2015 confirms GLPI Chairman Peter Carlino has made a new offer. The new offer has changed the three month old one that was not accepted. The details indicate the new offer is 32% higher than the original one proposed in March. GLPI is offering $5 billion, instead of $4.1 billion to own more of the Pinnacle REIT.
Pinnacle rejected previous GLPI proposals. The breakdown for the new proposal is $47.50 per share, allowing Pinnacle shareholders to have a 28 percent piece of the REIT.
Pinnacle has 15 casinos throughout eight states and in 2014, the company announced plans to separate their business into a REIT for the land and an operating company. The operating company would need to make lease payments to pay for using the land.
GLPI stated in the offer letter they would set the annual lease at $377 million for the casino payments. According to GLPI they have committed financing to ensure the transaction can be completed.
The company statement said, “Pinnacle continues to make new demands, delaying the signing of a definitive agreement and denying its shareholders a value-creating transaction.”
They look forward to the new offer being accepted.