04/01/2011 4:45PM

Ontario court deems MI Developments plan 'fair and reasonable'

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An Ontario court ruled on Friday that a plan approved by shareholders of MI Developments earlier this week to cede the company’s racing assets to its chairman was "fair and reasonable," according to the company.

As a result of the approval by the Ontario Supreme Court of Justice, the deal will close on June 30, according to MI Developments. Under the deal, Frank Stronach, the company’s chairman and chief executive, will swap all of his supervoting stock in MI Developments, plus $20 million, for the assets, which include Santa Anita Park, Gulfstream Park, Golden Gate Fields, and the company’s majority stake in Laurel Park and Pimlico Race Course, among other properties.

First proposed in late December, the deal was approved by shareholders of MI Developments on Tuesday.

Stronach will be required to step down from his positions as a result of the swap. In addition, MI Developments will be prohibited from investing in or providing any help to the properties.