Pinnacle gains approval in Nevada for Gaming & Leisure deal
US gaming company Pinnacle Entertainment has been granted approval by the Nevada Gaming Commission to complete its previously announced transaction with Gaming & Leisure Properties (GLPI).
In July of last year, Pinnacle and GLPI announced a transaction in which Pinnacle will spin off its operating business and real property of Belterra Park Gaming & Entertainment Center into a separately traded public company.
As part of the transaction, the real estate assets held by the remaining company will be acquired by GLPI.
Pinnacle shareholders will receive a fixed exchange ratio of $0.85 of a share of GLPI common stock per share of Pinnacle common stock they own, as well as also receiving one share of common stock in the new company for each share of Pinnacle common stock they own.
Upon the closure of the transaction, which remains subject to customary closing conditions and additional regulatory approvals, Pinnacle will operate the leased gaming facilities under a triple-net ‘Master Lease’ agreement with GLPI and pay initial annual rent of $377 million (€334.9 million).
Anthony Sanfilippo, chief executive of Pinnacle, said: “We have now obtained required gaming regulatory agency approvals in four of the six states needed to complete the transaction.
“We expect the applications related to our transaction with GLPI to be considered at the Missouri Gaming Commission meeting this week, and in Louisiana at its April 2016 meeting.
“We plan to close the transaction with GLPI as soon as possible after the receipt of the remaining gaming regulatory approvals.”
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