Stronach family makes offer for MI Developments

ST Acquisition Corp, controlled by the family of Canadian billionaire Frank Stronach, has made an offer to buy the remaining 40% of shares in Canadian real estate company MI Developments. ST Acquisition Corp is offering $13 per share, worth $607 million overall. MI Developments’ closing share price on Friday was $10.67. ST Acquisition said the deal would be financed through cash-on-hand and third party financing that is currently being arranged.

(Reuters) – MI Developments Inc’s controlling shareholder said on Friday it would make an offer of $13 per share, or $607 million, to buy out the remaining shares of the real estate company.

The cash offer from ST Acquisition Corp would be a 22 percent premium to MI Development’s closing price on Friday of $10.67.

ST Acquisition Corp currently owns about 50,000 Class A subordinate voting shares and over 380,000 Class B shares, which together are approximately 60 percent of the total voting power of MI Development’s outstanding shares.

ST Acquisition Corp is controlled by the Stronach family. Canadian billionaire Frank Stronach founded Magna International , which spun off MI Developments.

ST Acquisition Corp said on Friday that the offer would be financed through a combination of available cash-on-hand and third party financing that is currently being arranged.
(Reporting by Maria Aspan, editing by Jonathan Thatcher)