An entity controlled by the family of Frank Stronach has offered to purchase any or all of the outstanding stock it doesn't already own in racetrack operating company MI Developments.
The offer from ST Acquisition of $13 per share (in cash) of MID stock. In trading through 1 p.m. Oct. 4, MID’s stock had risen more than 32% to $14.10.
According to an announcement from ST Acquisition, it would purchase all outstanding Class A Subordinate Voting Shares and Class B Shares of MID that it does not already own. According to the release, there are 46.7 million MID shares outstanding, giving the deal a valuation of about $607 million.
The release said ST Acquisition and its affiliated and associated entities currently own an aggregate of 50,000 Class A Subordinate Voting Shares and 383,414 Class B Shares of MID, which together represent approximately 60% of the total voting power of MID’s outstanding shares.
The MID board of directors will establish a special committee of independent directors to review and evaluate the proposed offer and, as required by applicable securities laws, to supervise the preparation of a formal valuation of the shares, according to the release. The board of directors and the special committee will communicate further with MID’s shareholders in due course, including if and when a take-over bid circular is mailed to MID shareholders, the announcement said.
Primarily a real estate entity that owns, manages leased property, mostly to the Magna International auto parts manufacturer also controlled by Stronach, MID took over the racetrack assets previously held by bankrupt Magna Entertainment. MID owns Santa Anita Park, Golden Gate Fields, Gulfstream Park (including an interest in The Village at Gulfstream Park), the Maryland Jockey Club, Portland Meadows, AmTote and XpressBet.