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 2, 2001
MAGNA ENTERTAINMENT CORP.
- --------------------------------------------------------------------------------
(Exact Name of Registrant as Specified in its Charter)
Delaware
- -------------------------------------------------------------------------------
(State or Other Jurisdiction of Incorporation)
000-30578 98-0208374
- -------------------------------------------------------------------------------
(Commission File Number (I.R.S. Employer Identification No.)
337 Magna Drive, Aurora, Ontario, Canada L4G 7K1
- -------------------------------------------------------------------------------
(Address of Principal Executive Offices) (Zip Code)
(905) 726-2462
- -------------------------------------------------------------------------------
(Registrant's Telephone Number, Including Area Code)
NOT APPLICABLE
- -------------------------------------------------------------------------------
(Former Name or Former Address, if changed Since Last Report)
ITEM 5. OTHER EVENTS
On August 2, 2001, Magna Entertainment Corp. (the "Registrant") issued a press
release in which it announced that GMR-NY LLC ("GMR") has been selected as the
successful bidder to acquire the New York City Off-Track Betting operation
("NYCOTB"). The members of GMR are the Registrant, Greenwood Racing Inc. and
Racing Enterprises LLC. Completion of the transaction is subject to conditions,
including the passage of enabling legislation by the New York State Assembly and
Senate and the execution of a definitive agreement of purchase and sale. GMR has
agreed to pay a purchase price of up to $260 million upon completion of the
transaction, along with annual payments to the City based upon a percentage of
the annual handle of NYCOTB. The final purchase price could be lower depending
upon the content of the legislative amendments achieved prior to closing. If the
New York State Legislature approves the transaction but does not authorize
enhanced business capacity, the purchase price will be $150 million payable upon
completion of the transaction, another $50 million payable over five years, and
annual payments based upon a percentage of handle. If certain business
enhancements are approved, but not all of those sought, the purchase price will
be adjusted to reflect the extent of the enhancements.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
Exhibit 99 Copy of Registrant's press release dated August 2, 2001.
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 7, 2001 by: /s/ Gary M. Cohn
------------------------------------
Gary M. Cohn, Secretary