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The Globe and Mail

Stronach seeks to take MI Developments private

Fred Lum/Fred Lum/The Globe and Mail

A company controlled by the Stronach family made an offer Friday for the shares of MI Developments Inc. it does not already control in a deal that values the real estate firm at about $607-million (U.S.).

ST Acquisition Corp. has offered $13 (Canadian) per share for the class A subordinate voting shares and class B shares of MI Developments it does not already own.

STAC already owns 50,000 class A shares and 383,414 class B shares of MI Developments.

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MI Developments class A shares closed down 35 cents at $10.90 on the Toronto Stock Exchange on Friday.

MI Developments is the real estate company spun off from auto parts giant Magna International and it owns many of the production facilities used by auto parts giant.

The offer for the real estate firm follows a controversial stock buyout earlier this year that saw the Stronach family give up voting control of Magna in exchange for more than $1-billion.

That agreement gave Stronach $300-million in cash and nine million class A shares of Magna, as well as an estimated $120-million in consulting fees and control over a joint venture that will develop components for electric vehicles.

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