07/06/2005 11:00PM

Magna sells harness track

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Magna Entertainment Corp. has reached an agreement in principle to sell Flamboro Downs, a harness track near Toronto, to Great Canadian Gaming Corporation. The terms of the agreement call for a cash payment and assumption of debt by Great Canadian Gaming totalling approximately $64 million U.S.

Flamboro, 45 miles from Toronto, has 752 slot machines. Magna purchased Flamboro in April 2003 for a reported $47 million U.S.

W. Thomas Hodgson, president and CEO of Magna Entertainment, said Magna would continue to have use of the Flamboro racing signal and that it would work with Great Canadian to include that company's other tracks in the Magna distribution network.

Great Canadian Gaming, based in British Columbia, owns and operates Hastings in Vancouver, two harness tracks in British Columbia, and the recently purchased Georgian Downs, a harness track with slots in Ontario.