UPDATE 1-Stronach control set to end at MI Developments

* Stakeholders OK plan to end dual share structure

* Plan was first unveiled in December

* Stronach gets horse racing, gaming assets
(In U.S. dollars unless noted)

VANCOUVER, March 29 (Reuters) – Shareholders of MI
Developments Inc (MIMa.TO: Quote, Profile, Research) have approved a plan to eliminate
the company’s dual share structure, a move that effectively
ends Canadian billionaire Frank Stronach’s control of the real
estate company.

The proposal, which was unveiled on Dec. 22, was approved
in votes cast by holders of various classes of MI Developments
shares, the company said in a statement on Tuesday.

Implementation of the scheme is still subject to approval
by the Ontario Superior Court at a hearing on March 31, and
other unspecified conditions by June 30.

Stronach, who controls about 60 percent of the company’s
voting power, and other shareholders had agreed to vote in
favor of the proposal, MI Developments said on Jan. 31.
[ID:nN31260150]

Under the agreement, Stronach will trade control of MI
Developments and $20 million in working capital for horse
racing, gaming and other assets. [ID:nN22100327]

MI Developments will keep its real estate property business
but will be restricted from having any businesses related to
horse racing or gaming.

Stronach, who founded auto parts company Magna
International Inc (MG.TO: Quote, Profile, Research), has long been chairman of MI
Developments and took over as chief executive of the company in
November.

Stakeholders including hedge funds Farallon Capital and
David Einhorn’s Greenlight Capital have said that MI
Developments has not always acted in the best interest of its
shareholders, especially in its dealings with horse racing and
entertainment company Magna Entertainment.

MI Development’s A shares were 13 Canadian cents weaker at
C$27.39 on the Toronto Stock Exchange on Tuesday morning.

($1=$0.98 Canadian)
(Reporting by Nicole Mordant; editing by Rob Wilson)

UPDATE 1-Stronach control set to end at MI Developments