MI Developments postpones shareholder vote on Stronach proposal

By Lisa Kerner

Charlotte, N.C., June 27 - MI Developments Inc. postponed its previously announced special meeting scheduled for July 24.

Shareholders were to vote on a reorganization proposal submitted by controlling shareholder Frank Stronach and his affiliates.

The postponement was made in light of shareholder discussions regarding potential amendments to the March 31 proposal, MI Developments said.

An MI Developments news release noted that neither its special committee nor its board has made any decisions or recommendations with respect to the proposal.

Implementation of the reorganization proposal, if approved, would be carried out by way of a court-approved plan of arrangement under Ontario law.

Stronach's proposal calls for holders of MI Developments' class A subordinate voting shares and class B shares to exchange each of their existing shares for $15.50 in cash and shares of a new public company, it was previously reported.

MI Developments would sell its controlling equity investment in Magna Entertainment Corp. to an entity to be identified by the Stronach Group for $25 million in cash, a prior news release said.

The new MI Developments would be owned 80% by the former public shareholders, 10% by an entity affiliated with Stronach and 10% by Magna International Inc.

MI Developments is an Aurora, Ont.-based real estate operating company engaged in the ownership, development, management, leasing and acquisition of industrial and commercial real estate properties located in North America and Europe.

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