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SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported) August 30, 2000
MAGNA ENTERTAINMENT CORP.
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(Exact Name of Registrant as Specified in its Charter)
Delaware, United States of America
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(State or Other Jurisdiction of Incorporation)
000-30578 98-0208374
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(Commission File Number) (I.R.S. Employer Identification No.)
2001 Wilshire Boulevard, Suite 400, Santa Monica, California, USA 90403
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(Address of Principal Executive Offices) (Zip Code)
(310) 829-9907
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(Registrant's Telephone Number, Including Area Code)
NOT APPLICABLE
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(Former Name or Former Address, if changed Since Last Report)
ITEM 5. OTHER EVENTS
On August 30, 2000, the Registrant issued a press release in which the
Registrant announced that it had executed a definitive agreement to acquire Bay
Meadows Operating Company, L.L.C. ("Bay Meadows") in San Mateo, California and
also received approval from the California Horse Racing Board of the
acquisition. Subject to anti-trust approvals, the transaction is scheduled to
close in mid to late November, 2000
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
Exhibit 1 Copy of Registrant's press release dated August 30, 2000 is attached
as Exhibit 1.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
MAGNA ENTERTAINMENT CORP.
(Registrant)
Date: August 30, 2000 by: /s/ J. Brian Colburn
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J. Brian Colburn, Secretary
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EXHIBIT 1
MAGNA ENTERTAINMENT CORP.
2001 Wilshire Blvd., Suite 400
Santa Monica, CA 90403
Tel: (310) 829-9907
Fax: (310) 453-1885
Website: magnaentertainment.com
PRESS RELEASE
MAGNA ENTERTAINMENT CORP. ANNOUNCES CALIFORNIA HORSE
RACING BOARD APPROVAL OF ACQUISITION OF BAY MEADOWS
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August 30, 2000, Santa Monica, California......Magna Entertainment Corp. ("MEC")
(NASDAQ: MIEC,TSE: MIE.A, MEH) today announced that it has executed a definitive
agreement to acquire Bay Meadows Operating Company, L.L.C. ("Bay Meadows") in
San Mateo, California for $24.1 million in cash and also has received approval
from the California Horse Racing Board ("Board") of the acquisition. The terms
of the transaction allow MEC to conduct racing at the existing Bay Meadows
facility in San Mateo for two (2) years after completion of the acquisition
while the PaineWebber Real Estate Group completes its master plan and
entitlements for development of the existing racetrack property. Subject to
anti-trust approvals, this transaction is expected to close in mid to late
November 2000. MEC believes that the transaction, when completed, will be
accretive to its earnings in 2001 given its opportunity to maximize operational
synergies between Bay Meadows and Golden Gate Fields.
Mark B. Feldman, President & Chief Executive Officer of MEC, stated: "We are
grateful that the Board has approved the transaction, and believe that our
ownership of both Bay Meadows and Golden Gate Fields - the two premier racing
venues in Northern California - is in the best interest of not only MEC, but of
the state's horse industry community and horse racing fans as well. With
approval of this transaction, Northern California will become a cornerstone of
our plans to develop the world's finest horse racing and family entertainment
venue.
The addition of Bay Meadows addresses our objective of creating a twelve month
racing calendar, by adding outstanding fall racing to complement our existing
premier winter meets at Santa Anita and Gulfstream Parks. The twelve month
schedule will also help to decrease the seasonality of earnings."
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MEC will continue its work on improving the Golden Gate Fields premises,
complying with prior commitments to the Board and the racing industry, and
improving the overall customer's experience.
Magna Entertainment Corp., one of the largest operators of premier horse
racetracks in the United States, acquires, develops and operates horse
racetracks and related pari-mutuel wagering operations. These racetracks, which
include Santa Anita Park and Golden Gate Fields in California, Gulfstream Park
in Florida, Remington Park in Oklahoma, Thistledown in Ohio and Great Lakes
Downs in Michigan, accounted for 23% of the amounts wagered on pari-mutuel
racing in the United States in 1999. Magna Entertainment Corp. is also
developing racing and sports products for multi-media distribution via
interactive cable, satellite, and broadcast television, and the Internet as well
as certain leisure and retail-based real estate projects.
(www.magnaentertainment.com)
This press release contains various "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995 (the "Act"). The
Act provides certain "safe harbor" provisions for forward-looking statements.
All forward-looking statements made in this press release are made pursuant to
the Act. The reader is cautioned that these statements represent our judgment
concerning the future and are subject to risks and uncertainties that could
cause our actual operating results and financial condition to differ materially.
Forward-looking statements are typically identified by the use of terms such as
"may," "will," "expect," "anticipate," "estimate," and similar words, although
some forward-looking statements are expressed differently. Although we believe
that the expectations reflected in such forward-looking statements are
reasonable we can give no assurance that such expectations will prove to be
correct. Important factors that could cause actual results to differ materially
from our expectations include, but are not limited to: the impact of competition
from operators of other racetracks and from other forms of gaming (including
from Internet and on-line wagering); a substantial change in law or regulations
affecting our gaming activities; a substantial change in allocation of live
racing days; our continued ability to effectively compete for the country's top
horses and trainers necessary to field high-quality horse racing; our continued
ability to complete expansion projects designed to generate new revenues and
attract new patrons; our ability to sell some of our real estate when we need to
or at a price we want; the impact of inclement weather; and our ability to
integrate recent racetrack acquisitions.
For more information contact:
David A. Mitchell, Executive VP & CFO
Magna Entertainment Corp.
2001 Wilshire Blvd., Suite 400
Santa Monica, CA 90403
(310) 829-9907
