In a surprise move, the Ontario Teachers’ Pension Plan announced the fund had sold its 79.5 per cent interest in Maple Leafs Sports and Entertainment, owners of the Leafs and other assets, to the two Canadian telecommunications giants, just two weeks after pulling the stake off the market.

The two companies will transfer 5 per cent of their purchase to MLSE chairman Larry Tanenbaum, who already owned 20 per cent and played a pivotal role in forging an agreement by giving up some rights relating to the company’s lucrative broadcast assets. That 5 per cent has a value of about $80 million.

Chief executive officers Nadir Mohamed of Rogers and George Cope of Bell pointed to Tanenbaum as a major influence in resolving problems impeding a sale to the two telecommunications rivals that could have led to the Leafs falling out of Canadian hands for the first time.

“One of the things we felt passionate about was not only our strategy, but we felt it was important this asset truly remain in Canadian hands . . . ,” Cope told more than 100 media representatives at the Air Canada Centre.

“In my opinion, without Larry Tanenbaum, there is no transaction. Larry came to the table and solved the issues.”

Speculation surfaced recently that a major U.S. equity fund was eyeing a bid for Teachers’ majority stake and that former hockey star and multi-millionaire Wayne Gretzky might provide some Canadian content to any foreign ownership group.

“I am proud this is a ‘made-in-Canada’ deal that will bring resources and expertise to help us win on and off the ice, court and pitch,” said Tanenbaum, who owns his MLSE stake through Kilmer Sports.

Jane Rowe, senior vice-president of Teachers’ Private Capital, revealed that after ending an eight-month search for a buyer recently, it quickly received a “new unsolicited offer” from Bell and Rogers.

“It was comprehensive, it was firm and it met all the terms and conditions that we considered necessary,” she said.

The two companies had been working on a joint bid but it fizzled.

The pension plan, which represents 295,000 elementary and secondary schoolteachers and retirees, said it will plow proceeds from the sale into new investments that will bolster the fund in the future.

“It’s a nice piece of change for the fund and its members,” said Teachers’ spokeswoman Deborah Allan. “It has been an outstanding investment.”

Teachers’ would not reveal how much it has earned from its investment during its 17 years of ownership.

The pension fund, which has $107.5 billion in assets, became a significant shareholder in MLSE’s predecessor company in 1994 after a lengthy battle for control of the shares in the estate of former long-time owner Harold Ballard.

Since its initial undisclosed investment in the Leafs, Maple Leaf Gardens and a farm team, Teachers’ has spent heavily in building an enterprise that is now one of the premier sports companies in the world.

In addition to the Leafs and the ACC, MLSE also owns the Raptors of the National Basketball Association, Toronto FC of Major League Soccer, the Marlies of the American Hockey League, two sports specialty channels and Maple Leaf Square, a downtown condominium development beside the arena.

The teams have struggled in their leagues for years but the Leafs are now in a strong position to win a playoff spot this season.

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Cope and other executives would not identify the issues that held up a bid or what triggered more talks. But sources said Tanenbaum gave up some shareholder rights covering the handling of broadcast content that could adversely affect new owners with media interests.

Mohamed acknowledged that Rogers had a longstanding interest in MLSE. Rogers, which already owns the Jays and the Rogers Centre, had refused comment about its intentions for more than a year.

The Star reported in December 2010 that Teachers’ was open to selling its stake and Rogers had expressed interest. Teachers and Rogers downplayed the story.

“We loved the asset,” Mohamed said at the news conference Friday. “We always wanted it. . . . This investment fits squarely into our strategy of securing premium content and making it accessible to Canadians, when, where and how they want it.”

Mohamed added the deal means millions of consumers will have access to live sports, whether it be an iPhone, BlackBerry or other wireless device.

“People want to watch live sports,” he said. “To me that’s incredibly powerful.”

“Distribution of this incredible asset will be of such benefit for consumers,” added Cope.

He said live content is becoming increasingly important to Bell, Canada’s biggest telecommunications company, but noted the alliance won’t deter competition and shouldn’t run into any regulatory problems.

“Competition on the broadcast side just got more intense,” he said. “When this is over, we will be racing to get this content on our network.”

Cope and Mohamed said they still want to separately build the best sports media networks in the country. A media fight between Rogers, owner of Sportsnet, and Bell, holder of TSN, has been intensifying for years.

The deal, which is set to close next summer, also needs approval from the NHL. Bell holds a minority stake in the Montreal Canadiens and league rules prohibit ownership in more than one club.

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