|Texas Racing Commission Approves Lone
Star Park at Grand Prairie Sale to Magna Entertainment Corp.
The pending sale of substantially all of the operations and related assets
of Lone Star Park at Grand Prairie to Magna Entertainment Corp. (“MEC”)
(NASDAQ: MIEC; TSE: MIE.A, MEH) was approved by the Texas Racing Commission
(“TXRC”) at its regular meeting on October 16 in Austin, Texas.
The transaction is expected to close sometime this week.
“This is a great day for MEC and a great day for Lone Star Park
at Grand Prairie,” said Jim McAlpine, President and CEO of MEC.
“We are absolutely delighted to have the approval of the Texas Racing
Commission to complete this transaction. We appreciate the Commission’s
extensive deliberations. We know that the combination of MEC, Lone Star
Park at Grand Prairie and the City of Grand Prairie will be great for
horse racing in Texas.”
During the Wednesday meeting, the TXRC approved all aspects of the transaction
permitting the sale of the assets of Lone Star Park at Grand Prairie to
MEC; including the lease agreement between MEC Lone Star, LP (a limited
partnership owned and wholly controlled by MEC) and Grand Prairie Sports
Development Corporation (“GPSDC”).
In March, MEC entered into an agreement with Lone Star Race Park, Ltd.
and LSJC Development Corporation to acquire the racing assets of Lone
Star Park at Grand Prairie, Texas’ premier horseracing facility.
The GPSDC, a seven-member board appointed by the City of Grand Prairie
to serve as the landlord of Lone Star Park at Grand Prairie, voted unanimously
on Sept. 16 to approve a resolution, which allowed the execution of the
transfer of documents, including Lone Star Park at Grand Prairie’s
master lease agreement, to MEC.