BY STEVEN JACKSON

Business reporter

jacksons@jamaicaobserver.com

JAMAICAN Cedric Blair will continue as managing director at Desnoes & Geddes, makers of Red Stripe beer, amid Dutch-based Heineken flooding the board with its members this week.

At the same time, the stock price quadrupled since last week’s acquisition announcement making some investors wealthy.

Seven Heineken-affiliated directors were appointed on the 11-member board effective October 12, while an equal number of Diageo directors, including Blair, resigned from the board.

Blair continues, however, to lead the company despite demitting his position on the board.

“Heineken has made their decision. I am still the managing director of the company. I feel really very proud to lead a company like this. I have been privileged the last three years to lead the company and for me that represents a milestone and I will continue to lead this company on behalf of Heineken,” Blair told the Jamaica Observer in an interview at the 100 lounge in Kingston at the launch of the company’s new advertisement campaign.

Blair raised the return on equity from the mid-teens to the mid-twenties over his three years in office. It’s arguably an enviable record within a stagnant economy.

Heineken acquired majority shareholding in local-based Desnoes & Geddes last week for US$780 million. Since the announcement the stock jumped more than three times from $7.00 last Tuesday to $28.18 on Thursday. Blair described the jump in the stock price as the “wow” factor.

Prior to the transaction, Diageo owned 57.9 per cent of the issued share capital of D&G, and Heineken owned 15.5 per cent. Following the acquisition of Diageo’s share of the business, Heineken increased its stake in D&G to 73.3 per cent.

Heineken also announced last week that it would seek to acquire the remaining 26.7 per cent shareholding for a maximum implied consideration of US$194 million.

Blair declined to speculate on a timeline for Heineken to seek to acquire the remaining shares in the local brewery.

“It’s a matter between Heineken and their lawyers,” stated Blair about the shares which virtually doubled in price since the announcement.

Effective October 12, the following directors were unanimously appointed to the board of directors at D&G with immediate effect; including Eugene Ubalijoro, Radovan Sikorsky, Andrea Vogliazzo, Stefano Cavenati, Juan Luis Barrios, Wilbert Raajmakers and Hemmo Parson. Immediately after the appointment, the following directors, Jed Dryer, Renato Gonzales, Noel daCosta, Cedric Blair, Jaime Grana, Bruce Kidner and Cristina Diezhandino tendered their resignation.

“Cedric Blair, who is also CEO, and Mr Bruce Kidner who is the Chief Financial Officer, will both remain in the capacity until further advised,” stated the release to the Jamaica Stock Exchange this week.