It has been reported that Frank Stronach could soon be relinquishing his control over MI Developments in exchange for the company's horse racing, gambling and related assets, and $20 million (U.S.) of working capital
According to an article by the CBC, the news of the proposal sent MI Developments stock soaring today. The stock closed at $27.60 (U.S.) in New York trading, up $8.54 (U.S.) or 44 per cent.
The company said that it received a proposal today which would see Stronach cancel his multiple voting shares in exchange for MI's horseracing and gaming-related assets. Those assets include Santa Anita Park; Golden Gate Fields; MI's interests in Maryland's Pimlico Race Course, Laurel Park and Bowie training facility, Florida's Gulfstream Park, betting systems and the company's real estate development properties.
The company stated, "Upon completion of the reorganization proposal, MI would retain its income-producing real estate property business and would be restricted from engaging in or having an interest in, directly or indirectly, any business relating to horse racing or gaming."
(With files from CBC)