Penn National Gaming, Inc. (PENN: Nasdaq) (“Penn National Gaming” or the “Company”) announced today that it has secured approvals from five regulatory agencies that have jurisdiction over its gaming and racing operations of the steps necessary to implement the previously announced planned separation of its operating assets and real property assets.
The steps necessary to implement the planned separation were approved today by the Illinois Gaming Board and Maryland Lottery and Gaming Control Commission following approval yesterday by the Maine State Harness Racing Commission. Additionally, the Ohio Casino Control Commission yesterday approved the suitability of Gaming and Leisure Properties, Inc. (“GLPI”) and its subsidiary GLP Capital, L.P., following its approval of the transactional aspects of the planned separation in August. Upon securing approvals from all regulatory agencies that have jurisdiction over the Company’s gaming and racing operations and satisfaction of other conditions, the Company plans to separate its operating assets from its real property assets into two publicly traded companies, and GLPI would become a publicly traded real estate investment trust (“REIT”) holding substantially all of the Company’s real property assets.
The Company believes that the approval of the Indiana Gaming Commission (“IGC”) is the only remaining gaming agency approval required prior to consummation of the separation. In April, the IGC granted GLP Capital, L.P. a temporary supplier license and today the IGC issued the Permanent Supplier License for GLP Capital, L.P., granted its final approval and authorization to transfer the gaming license and affirmed the REIT structure. The IGC has advised the Company that the remaining needed authorization for Penn National Gaming to proceed with its financings, is expected within the Company’s timeline to initiate and effect the transaction.
Upon securing the final IGC approval, the remaining conditions that must be satisfied in order to proceed with the proposed transaction, include, without limitation, the registration statement (File No. 333-188608) for the proposed transaction filed by GLPI with the U.S. Securities and Exchange Commission (the “SEC”) being declared effective by the SEC, the completion of the financings needed to fund each of the public companies, and the continuing validity of the factual representations underlying the private letter ruling from the Internal Revenue Service (“IRS”), all of which are described in further detail in GLPI’s registration statement.
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