The Ontario Teachers’ Pension Plan has decided to keep its stake in the company that owns the Toronto Maple Leafs hockey team after an eight-month review.
Teachers’ launched a review of its ownership stake in Maple Leaf Sports and Entertainment in March after it received inquiries from possible buyers.
“Teachers’ has concluded this eight-month process with the decision to maintain its stake in MLSE, which has been and continues to be a very successful investment,” the pension fund said in a statement.
Teachers’ increased its stake in the company to 79.5% in September with the purchase of TD Capital Group’s 13.5% stake. At the time, it was thought the move was a step to streamline the sale of the pension fund’s stake in the team.
Kilmer Sports, which is controlled by Toronto businessman Larry Tanenbaum, owns the remaining stake and holds a right of first refusal on any sale by Teachers’.
U.S. private equity firm Providence Equity Partners — the company behind the Yankees Entertainment and Sports Network — had expressed an interest in buying the 80% MLSE stake.
Rogers Communications Inc. (TSX:RCI.B), which owns the Toronto Blue Jays baseball franchise as well as numerous media and telecom businesses, was also named as another possible bidder.
In addition to the Leafs, MLSE also owns the NBA’s Toronto Raptors, the AHL’s Toronto Marlies, the MLS’s Toronto FC and the Air Canada Centre, as well as several media assets.
It’s estimated MLSE is worth between $1.5 billion and $2 billion since the Leafs are a lucrative money maker in what has long been one of the best hockey markets in the world.