Magna chairman Frank StronachMIKE CASSESE
Shareholders of MI Developments Inc have overwhelmingly approved a plan to transfer the company's horse racing assets to Frank Stronach and eliminate the class B multiple voting shares he had used to control the real estate and gambling company.
More than 86 per cent of the company's class A subordinate shareholders approved a plan of arrangement at a meeting on Tuesday
Mr. Stronach will step down as chairman and chief executive officer.
Mr. Stronach will take over racetracks in Florida, California and Oregon and MI Developments' share of a joint venture that owns two tracks in Maryland.
MI Developments will continue as a real estate company. Its main assets will consist of auto parts plants operated by Magna International Inc., the company Mr. Stronach founded in a Toronto garage in 1957.
Under the plan of arrangement MI Developments is prevented from investing in horse racing activities.
The plan also includes a new board of directors for the company and a new chairman and chief executive officer.
Wes Voorheis, a Toronto lawyer who represented minority shareholders in negotiations on the transaction, will become chairman. William Lenehan, a former managing director of Farallon Capital Management LLC, one of the largest minority shareholders, will become chief executive officer.