Hotelier Kevin Hendrickson wants to buy the remaining 40 per cent stake in Jamaica Pegasus Hotel for $635 million and delist the stock.

It will require minority shareholders agreeing to sell their shares for $13.14 each, which is the same price at which Hendrickson bought the government’s 60 per cent stake in November. The offer price is currently $1 above Thursday closing price.

The offer opens on January 19, 2011, and closes on February 10,2011. It is based on a requirement that follows the majority acquisition of shares in a public company.

If successful, it will result in Hendrickson’s wholly owned Quivin Holding Group fully controlling the Pegasus, a company listed in 1984 on the JSE. Pegasus made losses in recent years but was ranked as the top JSE stock based on price movement between 2000 and 2009, up 1,278 per cent from $1.45 to $19.99.

“It is intended that Pegasus will be delisted from the JSE and become a non-listed, privately operated subsidiary of Quivin,” stated a letter of intent posted to the Jamaica Stock Exchange (JSE) on Wednesday, December 28, signed by Hendrickson with accompanying legalise.

“After the delisting, Pegasus will be subject to the rules and procedures applicable to a typical non listed company,” read the letter.

The Hendrickson family currently operates the Courtleigh Hotel and Suites — which is located beside the Pegasus and has 127 rooms — and the 143-room Knutsford Court hotel in Kingston. The Pegasus therefore brought Hendrickson’s room count in Kingston to 570 or 40 per cent of capacity in the Corporate Area.

The Hendrickson family also operates hotels in other areas in Jamaica, including the Sunset Beach Resort & Spa in Montego Bay, The Sunset at the Palms in Negril, Sunset Jamaica Grande in Ocho Rios, The Ruins at the Falls in Ocho Rios, Coconut Bay in St Lucia and Holiday Inn Sunspree in Montego Bay.

On November 29, 2010 Quivin Holdings purchased 71.9 million shares in the Pegasus from the government led National Hotels and Properties Limited (NHP) for $945 million, which resulted in roughly 60 per cent control.

“As a result of that acquisition, Quivin became obliged to make a mandatory offer for the remaining…issued shares of the Company,” stated the letter.

Quivin, a St Lucian registered company, wholly owned by Kevin Hendrickson was incorporated in October 2010 “for the express purpose of acquiring the majority shares”.

Hendrickson emerged as the successful bidder for the Pegasus at the end of an extensive and competitive bidding process, initiated by Scotia DBG Investments Limited on behalf of the Jamaican Government, stated the letter.