Issa selling out to Hendrickson

Sabrina Gordon, Business Reporter

John Issa and other unnamed shareholders have agreed to sell their shares in The Jamaica Pegasus hotel to Kevin Hendrickson at an undisclosed price, in a deal that appears to cover the stake held by off-shore registered Middle East Ventures Limited.

Hendrickson's company, Quivin Holdings, will own 93.4 per cent of the property if the minority parties sell their shares as agreed on September 28.

Quivin, however, could not get to 93 per cent ownership without acquiring the 16 per cent block owned by Mid-East, a faceless company that Issa has acknowledged some connection to in the past, but only to the extent that he held the proxy to vote the shares.

Neither Issa nor Hendrickson made themselves available for comment, despite efforts at contact.

The number of share units involved in the transaction was not disclosed on the stock exchange's news site; however, Issa's personal holdings of 9.175 million shares would have been worth J$138 million at September 28, and Mid-East's J$298 million.

The stock is now trading at J$15 per share, up from the J$13.14 per share or US$11-million price Quivin paid last November to acquire majority ownership of the holding company for Jamaica Pegasus, called Pegasus Hotels of Jamaica Limited.

Rising to 17 floors, the hotel comprises more than 300 rooms and is considered the most sought-after meeting spot in New Kingston.

The transaction with Issa is expected to close October 18.

Quivin will then make an offer to the remaining minority shareholders for the outstanding 6.6 per cent hotel shares. Hendrickson has signalled previously that he would delist the hotel once he hits the 90 per cent ownership threshold.

Issa had been one of the biggest hold outs preventing Hendrickson from getting to that goal.

sabrina.gordon@gleanerjm.com