Santa Anita Purchase Is Completed
Magna International Inc., Canada’s largest auto-parts maker, completed its purchase of Santa Anita Race Track from Meditrust Cos. for $126 million, adding to its real estate holdings.
Magna bought the thoroughbred horse-racing track, racing operations and adjoining land in Arcadia through its MI Developments real estate and entertainment unit. While Magna last month said it would spin off MI Developments, it hasn’t set a date.
Its plan to start a satellite-television channel for sports gambling in Europe has added to speculation that it won’t sell the unit any time soon.
Magna makes seats, instrument panels and stamped-metal auto parts, including frames, for General Motors Corp.’s full-size pickup trucks.
Its shares declined earlier this year because investors became concerned over Chairman Frank Stronach’s plans to venture beyond auto parts and into such projects as a proposed theme park and an executive airline.
“We’re concerned that Magna is being used as a piggy-bank for these other investments, and that MI Developments is going to continue to be part of Magna for a while,” said John Daviduk, an analyst with Credit Suisse First Boston Inc. He and fellow Credit Suisse analyst Nick Colas cut their ratings on Magna to “hold” from “buy” Monday morning.
Aurora, Ontario-based Magna already has sold stakes in its Decoma International Inc. and Tesma International Inc. units in public offerings.
Magna’s U.S. shares fell 94 cents to close at $64.06 on the New York Stock Exchange.
Shares of Needham Heights, Mass.-based Meditrust, a real estate investment trust with holdings in the health-care industry, fell 13 cents to close at $13.13, also on the NYSE.
