Penn National sells stake in Laurel, Pimlico

Penn National Gaming Inc. has reached an agreement to sell its stake in Pimlico Racecourse and Laurel Park to a company that is being set up by Frank Stronach, according to releases from the companies.

The transaction will allow Penn National to divest itself of an investment that soured shortly after the company bought the 50 percent stake in the two tracks early in 2010. At the time, Penn hoped to help the tracks' parent company, MI Developments, steer a casino license to Laurel Park, but that effort proved unsuccessful when voters in Anne Arundel County rejected a referendum that would overturn zoning approval for a casino that is planned for a location near Laurel.

The stake will be transferred to Stron-MJC Limited Partnership, Penn National said in a release. That company is also expected to receive the stake in the two tracks currently held by MI Developments, which will transfer all of its racing and gambling assets to Stronach on June 30 as part of a deal approved by shareholders of MI Developments earlier this year.

Terms of the transaction were not released, and Eric Schippers, a spokesman for Penn, said on Thursday the company would not provide them. Penn purchased the stake in May, 2010, for $50 million.