Ontario Municipal Employees Retirement System is nearing a deal to buy 20% of a holding company that owns a stake in Toronto’s professional hockey and basketball teams, according to people familiar with the matter.
The Ontario pension fund plans to acquire a minority interest in a private holding company of Canadian businessman Larry Tanenbaum. That firm owns 25% of Maple Leaf Sports & Entertainment Ltd., which holds the Toronto Maple Leafs, Toronto Raptors and other sports assets.
Sportico reported late Wednesday that the sides were near a deal that would value Maple Leaf Sports at more than $8 billion.
However, the investment from Omers isn’t a direct investment in MLSE, which has the potential to trigger issues the sports firm’s other shareholders, Rogers Communications Inc. and BCE Inc., which each own 37.5%. It’s an indirect investment in one of Tanenbaum’s Kilmer group of companies, the people said, speaking on condition they not be identified.
Spokespeople for Kilmer and Omers declined to comment.
