The Ontario Teachers’ Pension Plan, which controls the country’s biggest sports company including the Maple Leafs, is close to buying out a minority shareholder in efforts to make the sale of its own majority stake in the franchise more attractive to a suitor.

Teachers’ revealed Tuesday that it has reached a deal on financial terms to purchase 13.46 per cent of Maple Leaf Sports and Entertainment from TD Capital Group which could bump up the pension plan’s stake to almost 80 per cent.

The pension plan said a deal to buy out TD capital will probably simplify talks to sell MLSE, which owns the iconic Leafs and other significant sports properties.

“The consolidated stake in MLSE is expected to streamline the process,” Teachers’ said in a statement.

Teachers’ would not elaborate but sports business experts say the move would eliminate an obstacle or complications in marketing MLSE and could increase the number of bidders.

“It makes this one less party to negotiate with,” said Richard Powers, a professor at the University of Toronto’s Rotman School of Management. “Before, any possible suitor had to negotiate with several parties. This makes it more simple. They (Teachers’) also may have also had trouble offering their stake because of it.”

Sources say Teachers’ is seeking about $1.3 billion for its current 66-per- cent in MLSE, which also includes the Raptors basketball club, Toronto FC soccer club, the hockey Marlies, the Air Canada Centre, Maple Leaf Square condominium development and two specialty television channels.

Teachers’ said it is in “advanced discussions” with TD Capital on a deal. It did not disclose the price which could influence what the pension plan would get for overall control later. Any deal would be subject to the ownership requirements of pro sports leagues and government regulations.

TD, one of the original investors in MLSE and its predecessor company Maple Leaf Gardens in 1994, said it is “prepared to exit at the right time and on the right terms.” Sources say TD has sought a buyer for several years.

“It made money on its original investment and has wanted to get out for some time,” said one insider.

But any deal by Teachers’ to sell its stake will also have to consider financier Larry Tanenbaum and his firm Kilmer Capital, which holds the other 20 per cent of MLSE.

The pension plan noted in its statement that the deal could increase its stake in MLSE to between 76.35 and 79.53 per cent. The difference represents what Tanenbaum would be entitled to under an earlier shareholders rights agreement between MLSE owners.

Tanenbaum, chairman of MLSE, has indicated he intends to retain his interest in the company. He also has right of refusal on Teachers’ majority stake and could end up with the entire company with the support of a group of investors.

“It would be a surprise if he decided to sell,” said Powers about the future of Tanenbaum’s stake. “That’s a horse that is not leaving the stable.”

Teachers,’ which has $107.5 billion in assets, confirmed in March that it had retained financial services giant Morgan Stanley to explore the sale of its stake.

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The Star reported late last year that Teachers’ had discussed the sale of its stake to Rogers Communications. But Teachers’ chief executive officer Jim Leech stressed the pension fund was not “keen to sell.”

Rogers has consistently stickhandled around the question of interest in the Leafs and the other assets. The telecommunications giant would not confirm or deny in March that it had little interest in MLSE.

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