Stronach Group buys racing assets formerly held by MI Developments

AURORA, Ont. - July 1, 2011 - The Stronach Group has bought several racetracks and other gaming assets formerly held by MI Developments Inc., the two companies announced Thursday.

Financial terms were not disclosed, but the Stronach Group said the acquisition was part of a previously announced reorganization of MI Developments.

The racing and gaming assets acquired by The Stronach Group include: Santa Anita Park; Golden Gate Fields; Portland Meadows; MID’s joint venture interests in Maryland Jockey Club’s real estate and racing assets (Pimlico Race Course, Laurel Park and the Bowie Training Center); Gulfstream Park and MID’s joint venture interest in an associated retail development; horseracing technology assets, including Xpressbet®, AmTote and MID’s joint venture interest in HRTV, a cable and satellite television network dedicated to the sport of horse racing; as well as various development properties previously owned by MID.

Belinda Stronach, President and Chief Executive Officer of The Stronach Group, said: “Theacquisition of MID’s racing and gaming assets positions The Stronach Group at the forefront of the Thoroughbred horseracing industry. We are fully committed to ensuring the success and profitability of our strong portfolio of racing and gaming operations. We also look forward to working with the horseracing industry and all of its stakeholders to ensure the long-term success and viability of the industry.”

The family of Magna International founder Frank Stronach and other top shareholders of MI Developments had previously agreed to support the transfer of MI's horseracing tracks to the Stronach family, which will then give up special voting control of the real estate firm.

MI Developments was spun off from Magna International, which Stronach controlled through his multiple voting shares until last year when the dual-class structure was eliminated.

The company will have approximately 46 million outstanding common shares once the arrangement is complete.

Privately held Stronach Group owns horseracing and breeding programs, agriculture, electric car technology and medical technology and real estate assets in North America and Europe.


Read More: The Canadian Press