Magna Entertainment Corp. Announces Agreements to Sell Excess Real Estate

    AURORA, ON, Dec. 21 /CNW/ - Magna Entertainment Corp. ("MEC" or "the
Company") (NASDAQ:   MECA; TSX: MEC.A) today announced 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's consideration of the transaction was supervised by the Special
Committee of MEC's board of directors, consisting of Jerry D. Campbell
(Chairman), Anthony Campbell and William J. Menear. The transaction was
approved by MEC's Board after a unanimous recommendation of the Special
    The transaction was also reviewed by MII's Corporate Governance and
Compensation Committee and subsequently approved by the independent members of
MII's Board based on the unanimous recommendation of the Committee.
    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.

    About MEC

    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. MEC also develops, owns and operates casinos in conjunction with
its racetracks where permitted by law. MEC owns and operates AmTote
International, Inc., a provider of totalisator services to the pari-mutuel
industry, XpressBet(R), a national Internet and telephone account wagering
system, as well as MagnaBet(TM) internationally. Pursuant to joint ventures,
MEC has a fifty percent interest in HorseRacing TV, a 24-hour horse racing
television network and TrackNet Media Group, LLC, a content management company
formed for distribution of the full breadth of MEC's horse racing content.

    Forward-Looking Statements

    This press release contains "forward-looking statements" within the
meaning of applicable securities legislation, including Section 27A of the
United States Securities Act of 1933, as amended (the "Securities Act"), and
Section 21E of the United States Securities Exchange Act of 1934, as amended
(the "Exchange Act") and forward-looking information as defined in the
Securities Act (Ontario) (collectively referred to as forward-looking
statements). These forward-looking statements are made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act of 1995 and
the Securities Act (Ontario) and include, among others, statements regarding:
expectations as to the timing of the closing of the excess real estate sales;
expectations as to our ability to satisfy customary closing conditions,
including obtaining all necessary regulatory approvals; expectations as to the
use of the net proceeds from the excess real estate sales; expectations as to
our debt elimination efforts, which there can be no assurance of success,
expectations as to our ability to continue in our pursuit of other asset sale
transactions; and other matters that are not historical facts.
    Forward-looking statements should not be read as guarantees of future
performance or results, and will not necessarily be accurate indications of
whether, or the times at or by which, such performance or results will be
achieved. Undue reliance should not be placed on such statements.
Forward-looking statements are based on information available at the time
and/or management's good faith assumptions and analyses made in light of our
perception of historical trends, current conditions and expected future
developments, as well as other factors we believe are appropriate in the
circumstances and are subject to known and unknown risks, uncertainties and
other unpredictable factors, many of which are beyond the Company's control,
that could cause actual events or results to differ materially from our
forward-looking statements. Factors that could cause actual results to differ
materially from our forward-looking statements include, but may not be limited
to, material adverse changes: in general economic conditions, the popularity
of racing and other gaming activities as recreational activities, the
regulatory environment affecting the horse racing and gaming industries, and
our ability to develop, execute or finance our strategies and plans within
expected timelines or budgets. In drawing conclusions set out in our
forward-looking statements above, we have assumed, among other things, that
there will not be any material adverse changes: in general economic
conditions, the popularity of horse racing and other gaming activities, the
regulatory environment, and our ability to develop, execute or finance our
strategies and plans as anticipated.
    Forward-looking statements speak only as of the date the statements were
made. We assume no obligation to update forward-looking statements to reflect
actual results, changes in assumptions or changes in other factors affecting
forward-looking statements. If we update one or more forward-looking
statements, no inference should be drawn that we will make additional updates
with respect thereto or with respect to other forward-looking statements.

For further information:

For further information: Blake Tohana, Executive Vice-President and
Chief Financial Officer, Magna Entertainment Corp., 337 Magna Drive, Aurora,
ON L4G 7K1, Tel: (905) 726-7493

Organization Profile


More on this organization

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890