Stronach sells stock ahead of takeover

Frank Stronach, who is set to take over the racing and gambling assets owned by MI Developments on Thursday, has sold approximately $850 million of stock in the auto-parts company he founded since December, according to regulatory filings.

The massive series of sales underlines Stronach’s financial strength on the eve of the transfer, which will give the 78-year-old billionaire total control of some of racing’s most high-profile tracks, including Santa Anita Park in California and Gulfstream Park in Florida. In a deal approved by shareholders of MI Developments earlier this year, Stronach will take over the assets in exchange for giving up his control of MI Developments, satisfying stockholders who had been critical of the company’s commitment to assets that had already led one publicly traded company, Magna Entertainment, into bankruptcy, wiping out hundreds of millions of dollars in shareholder equity and bad debt.

The new company, which is being called the Stronach Group, will rely entirely on the cash flow generated by the properties, which also include a casino at Gulfstream Park; Laurel Park and Pimlico Racecourse in Maryland; an account-wagering company, XpressBet; and a half-stake in the racing broadcaster HRTV.