Report: Telecom Giants Bell and Rogers Initiate Challenge Against Tanenbaum's Proposed Sale of Maple Leafs Parent MLSE
Tanenbaum is attempting to sell 20 percent of his company, Kilmer Sports Inc., to pension fund company OMERS.
It appears Larry Tanenbaum’s attempt to sell a stake in Maple Leafs Sports & Entertainment has hit a snag.
According to the Globe and Mail, Telecommunication powerhouses Rogers Communications Inc. and Bell Canada Enterprises Inc. are contesting Tanenbaum's proposed sale of his ownership share in the parent company overseeing the Toronto Maple Leafs hockey team to a pension plan.
Last month, Tanenbaum informed Rogers and Bell about his intention to generate $400 million through the sale of a 20% portion in Kilmer Sports Inc., a holding company under family control. The buyer for this stake would be the Ontario Municipal Employees Retirement System pension plan. Kilmer Sports currently possesses a 25% ownership of Maple Leaf Sports and Entertainment (MLSE), Tanenbaum serving as the chairman. The remaining 75% is evenly divided between Rogers and Bell, who jointly operate a holding company.
According to the Globe, Bell and Rogers sent a joint letter to Tanenbaum, expressing their reservations regarding the planned sale, but were unable to get the exact details of the concerns.
The proposed sale by Tanenbaum, if it were to pass, would put a new valuation of $8 billion for all of MLSE and would further grow the valuation of NHL franchises.
The Ottawa Senators were sold earlier this month to Michael Andlauer at a $950 million valuation. Tampa Bay Lighting owner Jeff Vinik is selling a stake in the franchise to Arctos Sports Partners at a $1.4 billion valuation.
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