BALTIMORE-Magna Entertainment Corp. has exercised its option toacquire the remaining 49% stake in locally based Maryland JockeyClub, which operates Pimlico Race Course here and the Laurel Parkracetrack in Laurel, MD. Under the agreement struck with MJC'sprevious owners, entities of the De Francis family, in November2002, Ontario-based Magna paid $18.3 million plus interest for theremaining portion of the company.

Its assets include Pimlico, best known for hosting thePreakness, which is the second leg of horseracing's Triple Crown;Laurel Park, which is located midway between Baltimore andWashington, DC, and a training center in Bowie, MD. In 2002, Magnaacquired 51% of MJC and its assets in a series of complextransactions with various De Francis entities. The buy representedan aggregate value of approximately $117 million and included apayment of $51 million in cash.

The option on the remaining stake was scheduled to expire thisNovember. In accordance with the initial acquisition agreement,Joseph De Francis and Karin De Francis will eventually leave MJC,but Joseph De Francis will remain a director of Magna under theagreement struck in 2002.