Penn National Gaming, Inc. (PENN: Nasdaq) and MI Developments
Inc. (“MID”) (TSX: MIM.A, MIM.B; NYSE: MIM), announced today they
have agreed to establish a joint venture to own and operate the
Maryland Jockey Club.
Under the terms of the joint venture, Penn National and MID will
work collaboratively to strengthen and enhance the racing
operations at Laurel Park and Pimlico, to maximize the use and
value of the Maryland Jockey Club’s real estate assets and to
pursue other opportunities, including the potential for gaming, to
maximize the overall value of the business.
Pimlico Race Course, opened in 1870, is the country’s second
oldest racetrack and is the annual host of the Preakness® Stakes,
the second leg in thoroughbred racing’s Triple Crown and the
cornerstone event in the facility’s annual eight week spring meet.
Pimlico Race Course features a one-mile oval track, a 7/8-mile turf
course and fixed seating for approximately 15,000 spectators.
Laurel Park, the sister track to Pimlico, opened in 1911 and hosts
a 3 ½ month winter meet beginning in January as well as a four
month fall meet beginning in September. Laurel Park features a 1
1/8 mile oval track and a one mile turf course with fixed seating
for approximately 5,000 spectators.
Peter M. Carlino, Chief Executive Officer of Penn National,
commented, “We are excited to acquire an interest in the Maryland
Jockey Club, owner and operator of a pair of the country’s most
historic racing venues, Pimlico Race Course and Laurel Park. Our
involvement in Pimlico, home to one of thoroughbred racing’s crown
jewels, the Preakness Stakes, and Laurel Park, is consistent with
Penn National’s strategy of expanding and diversifying our
portfolio of pari-mutuel operations and presence in key markets. We
look forward to working with MI Developments on the re-development
of surplus real estate assets at the Maryland Jockey Club, as well
as collaborating with the local horsemen and community members and
leaders in Baltimore and Laurel to support their efforts to
continue delivering a high-quality racing experience at these two
historic racing venues.”
Dennis Mills, MID’s Vice-Chairman and Chief Executive Officer,
added, “This transaction is consistent with our plan to enhance the
returns of our racing and real estate assets and pursue other
opportunities, including the potential for gaming, to benefit the
value of the Maryland Jockey Club.
Penn National is a strong partner with complementary
pari-mutuel, real estate and gaming industry expertise as well as a
strong financial position. We look forward to working with Penn
National, the racing industry and local regulators to develop
business models that will ensure the ongoing success of these high
quality assets.”
The closing of the transaction, expected to occur in mid-2010,
is subject to approvals from the Maryland Racing Commission and the
satisfaction of certain other customary closing conditions.
About Penn National Gaming
Penn National Gaming owns and operates gaming and racing
facilities with a focus on slot machine entertainment. The Company
presently operates nineteen facilities in fifteen jurisdictions,
including Colorado, Florida, Illinois, Indiana, Iowa, Louisiana,
Maine, Mississippi, Missouri, New Jersey, New Mexico, Ohio,
Pennsylvania, West Virginia, and Ontario. In aggregate, Penn
National’s operated facilities feature over 26,300 gaming machines,
approximately 400 table games, over 2,000 hotel rooms and over
959,000 square feet of gaming floor space.
In the second half of 2010, the Company plans to add table games
to its facilities in West Virginia and Pennsylvania and expects to
open the first video lottery terminal facility in the state of
Maryland in Cecil County. Through a joint venture, Penn National is
developing a full casino at Kansas Speedway in Kansas City, which
is anticipated to open in early 2012, and is also developing
casinos in Toledo and Columbus, Ohio, with openings targeted for
the second half of 2012. The Company recently announced its planned
acquisition of Beulah Park in Ohio in a transaction expected to
close in the second quarter of 2010.
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. Actual results may vary materially from expectations.
Although Penn National Gaming, Inc. and its subsidiaries
(collectively “Penn National”) believe that our expectations are
based on reasonable assumptions within the bounds of our knowledge
of our business and operations, there can be no assurance that
actual results will not differ materially from our expectations.
Meaningful factors that could cause Penn National’s actual results
to differ from expectations include, but are not limited to, delays
in obtaining regulatory approvals required to complete, or other
delays or impediments to completing, the proposed transaction,
including relative to satisfaction of certain conditions to
closing; risks related to the following: our ability to maintain
regulatory approvals for our existing businesses and to receive
regulatory approvals for our new businesses; the passage of state,
federal or local legislation that would expand, restrict, further
tax, prevent or negatively impact operations (such as a smoking ban
at any of our facilities) in the jurisdictions in which we do
business or seek to do business; the activities of our competitors
and the emergence of new competitors; construction factors,
including delays, unexpected remediation costs, local opposition
and increased cost of labor and materials; the costs and risks
involved in the pursuit of those development opportunities; the
availability and cost of financing; the effects of local and
national economic, credit, capital market, housing, energy
conditions on the economy in general and on the gaming and lodging
industries in particular; and other factors as discussed in Penn
National’s Annual Report on Form 10-K for the year ended December
31, 2009, subsequent Quarterly Reports on Form 10-Q and Current
Reports on Form 8-K as filed with the SEC. Penn National does not
intend to update publicly any forward-looking statements except as
required by law.
About MID
MID is a real estate operating company engaged primarily in the
acquisition, development, construction, leasing, management and
ownership of a predominantly industrial rental portfolio leased
primarily to Magna International Inc. and its automotive operating
units in North America and Europe. MID also acquires land that it
intends to develop for mixed-use and residential projects. For
further information about MID, please visit www.midevelopments.com.
You can also find MID’s filings at www.sedar.com and
www.sec.gov.
Forward-Looking Statements
This press release may contain statements that, to the extent
they are not recitations of historical fact, constitute
“forward-looking statements” within the meaning of applicable
securities legislation, including the United States Securities Act
of 1933 and the United States Securities Exchange Act of 1934.
Forward-looking statements may include, among others, statements
relating to the MEC Chapter 11 Proceeding and MID’s participation
therein and statements regarding MID’s future plans, goals,
strategies, intentions, beliefs, estimates, costs, objectives,
economic performance or expectations, or the assumptions underlying
any of the foregoing. Words such as “may”, “would”, “could”,
“will”, “likely”, “expect”, “anticipate”, “believe”, “intend”,
“plan”, “forecast”, “project”, “estimate” and similar expressions
are used to identify forward-looking statements. Forward-looking
statements should not be read as guarantees of future events,
performance or results and will not necessarily be accurate
indications of whether or the times at or by which such future
performance will be achieved. Undue reliance should not be placed
on such statements. Forward-looking statements are based on
information available at the time and/or management’s good faith
assumptions and analyses made in light of our perception of
historical trends, current conditions and expected future
developments, as well as other factors we believe are appropriate
in the circumstances, and are subject to known and unknown risks,
uncertainties and other unpredictable factors, many of which are
beyond MID’s control, that could cause actual events or results to
differ materially from such forward-looking statements. Important
factors that could cause such differences include, but are not
limited to, the risks set forth in the “Risk Factors” section in
MID’s Annual Information Form for 2009, filed on SEDAR at
www.sedar.com and attached as Exhibit 1 to MID’s Annual Report on
Form 40-F for the year ended December 31, 2009, which investors are
strongly advised to review, and delays in obtaining regulatory
approvals required to complete, or other delays or impediments to
completing, the proposed transaction, including relative to
satisfaction of certain conditions to closing. The “Risk Factors”
section also contains information about the material factors or
assumptions underlying such forward-looking statements.
Forward-looking statements speak only as of the date the statements
were made and unless otherwise required by applicable securities
laws, MID expressly disclaims any intention and undertakes no
obligation to update or revise any forward-looking statements
contained in this press release to reflect subsequent information,
events or circumstances or otherwise.
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