Magna Entertainment (MECA) Announces Agreements to Sell Excess Real Estate
Magna Entertainment (NASDAQ: MECA) that it has entered into an agreement to sell 225 acres of excess real estate located in Ebreichsdorf, Austria to a subsidiary of Magna International Inc. ("MII") for use in its automotive business for a purchase price of 20.0 million Euros (approximately US$28.7 million at today's exchange rates), subject to customary adjustments. The closing of the transaction is expected to occur during the first quarter of 2008 following the satisfaction of customary closing conditions including obtaining all necessary regulatory approvals. The net proceeds received on closing will be used entirely to repay debt.
Blake Tohana, Executive Vice-President and Chief Financial Officer of MEC, commented: "This transaction is the first significant contracted asset sale as contemplated by our previously announced debt elimination plan. We are continuing to pursue other asset sale transactions and remain committed to our debt elimination plan."
MEC also announced that it has entered into sale agreements, with unrelated parties, for three parcels of excess real estate comprising approximately 825 acres in Porter, New York. The expected total sale proceeds from these transactions are US$1.8 million. These sale transactions are expected to be completed on or about December 28, 2007 and the net sale proceeds will be used entirely to repay debt.
MEC, North America's largest owner and operator of horse racetracks, based on revenue, acquires, develops, owns and operates horse racetracks and related pari-mutuel wagering operations, including off-track betting facilities.
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