Few takers for Pegasus share offer
Published:Wednesday | May 18, 2011 | 12:00 AM
The majority of minority shareholders in Pegasus Hotels of Jamaica have opted to hold on to their shares after Kevin Hendrickson signalled he was no longer keen to take on full or near total ownership.
The takeover offer from Hendrickson's company, Quivin Holdings Limited, yielded subscriptions of 3,499,794 units, valued at J$46 million - J$13.14 per share - at the close of subscriptions on April 28.
Quivin, which acquired 59.81 per cent majority ownership of the hotel for US$11 million from the Urban Development Corporation last November, was required to make an offer for the other 48.3 million shares held by minority shareholders.
worse than expected
But after poring over the books of his new acquisition, Hendrickson advised the market that the hotel company's financial position was worse than expected, and that The Jamaica Pegasus plant would have to be upgraded to reposition for a turnaround.
He indicated that new investment of about J$802 million might be required, which he would foot in exchange for a 25-year lease, at a starting rate of US$1 million per year, to be awarded another company he created to run the hotel.
The take-up gives Quivin ownership of 75.365 million shares, or 63.72 per cent of the hotel.