Frank Stronach, who is set to take over the racing and gambling
assets owned by MI Developments on Thursday, has sold approximately $850
million of stock in the auto-parts company he founded since December,
according to regulatory filings.
The massive series of sales underlines Stronach’s financial strength
on the eve of the transfer, which will give the 78-year-old billionaire
total control of some of racing’s most high-profile tracks, including
Santa Anita Park in California and Gulfstream Park in Florida. In a deal
approved by shareholders of MI Developments earlier this year, Stronach
will take over the assets in exchange for giving up his control of MI
Developments, satisfying stockholders who had been critical of the
company’s commitment to assets that had already led one publicly traded
company, Magna Entertainment, into bankruptcy, wiping out hundreds of
millions of dollars in shareholder equity and bad debt.
The new company, which is being called the Stronach Group, will rely
entirely on the cash flow generated by the properties, which also
include a casino at Gulfstream Park; Laurel Park and Pimlico Racecourse
in Maryland; an account-wagering company, XpressBet; and a half-stake in
the racing broadcaster HRTV.
Read More