Gaming & Leisure Properties Inc. (NASDAQ:GLPI) and Eldorado Resorts Inc. (NASDAQ:ERI) said they agreed to buy six casino properties from Tropicana Entertainment Inc. in a deal valued at US$1.85bln.
The companies are purchasing the assets from the unit of Carl Icahn’s Icahn Enterprises LP (NASDAQ:IEP), they said today in statements on their websites.
Gaming & Leisure will acquire the real-estate assets of the business for US$1.21bln, while Eldorado will pay the remaining $640mln and lease the casino properties from Gaming & Leisure, they said.
Eldorado shares rose 17% to US$41.90, while Gaming & Leisure climbed 3.7% to US$34.53 at 12:13 p.m. Icahn Enterprises was little changed US$61.64.
Eldorado's share-price target was raised to US$49 from US$42 today by Roth Capital analyst David Bain, according to thefly.com. His reiterated his Buy rating on the stock.