A majority of shareholders in MI Developments have agreed to support the transfer of the company’s racetracks to Frank Stronach in exchange for the company chairman to relinquish his voting control over MID.
According to a Jan. 31 announcement from MID, Stronach and his family, who control MID through their class B shares, would obtain control of the racetracks and associated real estate and gaming-related businesses, as well as $20 million to operate the business.
MID owns Santa Anita Park, Golden Gate Fields, Gulfstream Park (including an interest in The Village at Gulfstream Park, a joint venture with Forest City Enterprises, Inc.), The Maryland Jockey Club (Pimlico and Laurel) , Portland Meadows, AmTote and XpressBet, and through some of these assets, is a supplier, via simulcasting, of live horseracing content to the inter-track, off-track and account wagering markets.
MID, a real estate spinoff of Magna International, the auto parts conglomerate founded by Stronach, took over the racing assets when Magna Entertainment, also controlled by Stronach, filed for bankruptcy last year.
Although the Stronach family would cede control of MID under the plan, they would retain rights to some land owned by the company, including a right of first refusal to Magna’s main office in Aurora, Ontario, Canada.
The deal is expected to be completed by the end of June.