Gaming and Leisure Properties declares special dividend of $11.85 per share (GLPI) 50.26 : Co announces that its Board of Directors declared a special dividend to shareholders in connection with its previously announced intention to qualify as a real estate investment trust in 2014 following its separation from Penn National Gaming (PENN) on November 1, 2013.
The special dividend of $1.05 bln, or ~$11.85 per share, will be paid on February 18, 2014 to shareholders of record on January 13, 2014. The amount of cash to be distributed will be $210 mln, or 20% of the total distribution, with the remainder to be paid in shares of GLPI common stock. Although the Company does not anticipate the need for a further dividend to complete the purge of its historical earnings and profits, if the Company later determines that a subsequent dividend is necessary to qualify as a REIT in 2014, it would expect to declare and pay an additional dividend of earnings and profits no later than December 31, 2014.
Each GLPI shareholder will be permitted to elect to receive the shareholder's entire entitlement in either cash or GLPI common stock, subject to the 20% aggregate cash requirement. Shareholders of record on the Record Date will receive an election form providing for a choice of all cash or all shares, which must be completed and returned by the close of business on February 10, 2014. Shareholders electing cash will receive all cash unless the aggregate amount elected by all shareholders is in excess of the 20% cash requirement, in which case, cash will be allocated on a pro rata basis to such shareholders with the balance in shares.