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Stronach Comments on Magna Developments24 August 2004TORONTO -- As reported by Bloodhorse: "MI Developments Corp., which has unveiled plans to acquire the outstanding stock it doesn't own in racetrack-operating company Magna Entertainment Corp., announced Aug. 20 that chief executive officer Brian Tobin had resigned and was replaced by John Simonetti. Previously, Simonetti was chief financial officer of MID, a real estate operating company that owns controlling interest in MEC. "Tobin also resigned his positions as vice chairman and a director of MEC. "MID is offering $1.05 in cash and 0.2258 of an MI Class A share for each Magna Entertainment Class A share, which equates to about $7 a share total. MID wants to buy the remaining 40.8 million Class A shares it doesn't own for a total of $285.8 million. The cash component of the deal, if all shareholders accepted the offer, would be about $42.9 million. Both companies are publicly held. "In a conference call with media and financial analysts Aug. 23, Stronach said he couldn't provide details on the reasons for Tobin's resignation. He only said the executive told him he wanted to pursue other interests. "Stronach was questioned at length by the financial analysts about the proposed takeover and whether it would have greater benefit to MEC shareholders than MID shareholders..." |