A Share Purchase Agreement (SPA) for the sale of Le Meridien Pegasus Hotel has been reportedly executed, although the government has complained that no share transfer has been approved by the hotel’s board.
According to a statement yesterday from the National Industrial and Commercial Investments Limited (NICIL), which represents the National Insurance Scheme (NIS) on the board, a representative of the Starman UK Services advised that the SPA was executed between an overseas-based company, in which local businessman Robert Badal is the principal, and Starman. Starman UK Services Company, which currently manages the hotel, is a joint venture between Starwood Capital and Lehman Brothers Holdings.
NIS as a minority shareholder was unaware of the reduction in sale price and the implications for its value, NICIL said, adding that the government will continue to raise its concerns and does not consider the matter closed.
Stabroek News was unable to contact Badal, Head of Guyana Stockfeeds Inc., for comment.
NICIL, meanwhile, said after newspaper reports, the government wrote Starman, inquiring about whether the hotel had been sold. It noted that the hotel rules require that any share transfer be approved by the Board. “To date, despite reports of an executed SPA, this has not been done,” NICIL said.
As a result, the government has expressed its concern about the process regarding the sale and particularly that the governance procedures appear poor.
