(Reuters) - Canadian pension plan OMERS said on Monday it will acquire a 5% indirect stake in Maple Leaf Sports & Entertainment (MLSE), the parent company of hockey's Toronto Maple Leafs and basketball's Toronto Raptors, for $400 million.
The investment comes through a 20% direct stake in Kilmer Sports Inc (KSI) owned by MLSE Chair Larry Tanenbaum.
MLSE, formed in 1998, is the parent company of several sports teams and has also invested in and operates five sports facilities in Toronto.
After the deal closes, Tanenbaum will remain MLSE's chair and retain an 80% stake in KSI, while OMERS will be a financial investor and will not participate in operational decisions of MLSE or any of its teams.
Founded in 1962, OMERS is one of Canada's largest defined benefit pension plans, with C$127.4 billion ($93.03 billion) in net assets as at June 30.
($1 = 1.3694 Canadian dollars)
(Reporting by Manya Saini in Bengaluru; Editing by Krishna Chandra Eluri)