Stronach set to give up control of real estate firm

[Kasept]

Trading halted on MI Developments stock
By Matt Hegarty

Trading of shares of MI Developments was halted on the Toronto Stock Exchange on Tuesday after reports of a potential deal that would allow the company’s chairman, Frank Stronach, to swap his controlling stake in the company for its racing assets. Toronto financial regulators ordered the halt at 12:48 p.m., approximately one hour after Reuters reported the possibility of the deal to swap Stronach’s special-voting shares for the assets. The report cited unidentified sources. The share price had risen 4.4 percent prior to the halt order, to $19.50.

If the deal reported by Reuters were approved by shareholders, Stronach would give up super-voting shares that allow him to hold approximately 60 percent of the voting rights while only holding less than 1 percent of the nominal value of the equity in the company. According to Reuters, the deal also would require the election of a new board at MI Developments.

MI Developments currently owns Santa Anita Park and Golden Gate Fields in California; Gulfstream Park and an adjacent casino in south Florida; and a 51 percent stake in Laurel Park and Pimlico Racecourse in Maryland (a deal to sell a 49 percent stake in the tracks to Penn National Gaming Inc. has closed but has not been approved by regulators). It also owns AmTote, a bet-processing company; the account-wagering platform XpressBet; and a half-interest in the television broadcasting company HorseRacingTV.