Local arts patron and Bermuda land owner, Mr. Christopher Ondaatje, has sold controlling interest in Toronto-based investment banking company, The Ondaatje Corporation, for more than Cdn$45.5 million to Physicians Insurance Company of Ohio (PICO).

PICO is a US-based investment company with interests in fund management, insurance, real estate and technology.

The private agreement, approved by the Toronto Stock Exchange, saw The South East Asia Plantation Corporation (SEAP) Ltd. sell 21,681,084 common shares (38.2 percent of the issued and outstanding common shares) of The Ondaatje Corporation to PICO at Cdn$2.10 a share.

Mr. Ondaatje has a wing of the Bermuda National Art Gallery named after him at City Hall.

As president of SEAP, he said,"The decision to hand over responsibility and effective control of the company to Physicians Insurance Company of Ohio is consistent with realising the objectives of the company and first and foremost with enhancing shareholder value.

"I may have been the best leader for the company two and a half years ago when it was in trouble, but it is in great financial shape now and it is time to hand the baton over to a new and powerful management group who have not only an ambitious international investment objective, but also a significant ownership in the company.

"I believe this transaction to be the right move at the right time and very much in the best interests of both the shareholders and the company.'' Back in June 1992, Mr. Ondaatje's SEAP purchased controlling interest in the company (formerly Loewen, Ondaatje, McCutcheon Inc.) at a time when the company required new direction and recapitalisation.

Since that time, the company's book value has shot up from $30 million to $126 million.

Ondaatje is an investment banking company which, through its subsidiaries and affiliates, has established and/or acquired international operations that include investment banking in North America and South East Asia, commodities broking, exports and export finance.

Chairman Mr. Ondaatje, Mr. Hendrik Hooft, Mr. Paul Davis and Mr. David Ondaatje resigned from the board of directors. New appointments include chairman, Mr. Ronald Langley, president and CEO Mr. John Hart, Mr. Stephen Halperin and Mr. Jim Hamilton.

Mr. Hart and Mr. Langley are also with PICO. And Mr. Garrett Herman has agreed to remain on the board through the transitional period until the annual and special meeting of shareholders on September 26.

Then chairman, Mr. Ondaatje had been re-appointed to be president and CEO, last June, after Mr. Anthony Griffiths stepped down as a result of a difference of opinion regarding the strategic direction of the company.

Mr. Ondaatje then said that a number of parties had expressed an interest in purchasing the shares.

The company in July reported net income of $6,179,000 or $0.11 per common share for the fiscal year ending March 31 on revenues of $43.3 million. It compared with the $9.3 million or $0.21 per common share for the year before, on revenues of $23.6 million. Expenses more than doubled to $33.6 million from $13.4 million.

The company, through a subsidiary, has operations in agriculture, plantation management, import and export marketing, travel services and courier services in Sri Lanka.

Returns on investment activity were offset by disappointing results from the Sri Lankan operating businesses as well as severance costs in the London and New York offices, the company reported. The company noted that the primary issues have already been addressed.