SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 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): March 6, 2002
MAGNA ENTERTAINMENT CORP.
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(Exact Name of Registrant as Specified in its Charter)
Delaware
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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.)
337 Magna Drive, Aurora, Ontario, Canada L4G 7K1
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(Address of Principal Executive Offices) (Zip Code)
(905) 726-2462
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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 AND REGULATION FD DISCLOSURE
On March 6, 2002, a wholly-owned subsidiary of the Registrant, MEC Lone Star,
L.P., entered into an asset purchase agreement with Lone Star Race Park, Ltd.
and LSJC Development Corporation to acquire substantially all of the operations
and related assets of Lone Star Park at Grand Prairie, a thoroughbred and
American quarter horse racetrack located near Dallas, Texas. The assets to be
acquired include the rights under a long-term lease of the Lone Star Park
facility and a related purchase option exercisable at the termination of the
lease in 2027.
The purchase price of the acquisition will be satisfied by the payment of $80
million in cash and the assumption of certain liabilities, which includes the
Lone Star Park facility capital lease obligation of approximately $19 million,
subject to usual adjustments at closing. The transaction is expected to close
in the second quarter of 2002, subject to certain conditions, including the
receipt of regulatory approvals.
A copy of the press release announcing the transaction is attached as Exhibit 99
to this Current Report on Form 8-K.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
Exhibits Page
Exhibit 99 Copy of Registrant's press release dated March 6, 2002. 3 - 4
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: March 11, 2002 by: /s/ Gary M. Cohn, Secretary
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Gary M. Cohn, Secretary