KINGSTON, Jamaica — Managing director of Red Stripe Cedric Blair is currently under probe by the Jamaica Stock Exchange (JSE) for the purchase of 108,891 Desnoes and Geddes (D&G) shares days ahead of the formal announcement of the acquisition of the company by Heineken International.

Market disclosures indicate that up until June, Blair owned 750,000 units in the company but purchased another 108,891 shares between September 29 and October 6 when the stocks were being traded for up to $7 per share.

On October 7, Heineken acquired majority shareholding in local based Desnoes & Geddes for US$780 million. Since the announcement the stock jumped more than three times from $7.00 to $28.18, making many shareholders wealthy.

Reports are that two of the transactions happened a day after Blair was told of a potential deal with Heineken.

The Jamaica Observer has learnt that chief regulatory officer of the JSE, Wentworth Graham began to probe the transactions after the sale of Red Stripe was disclosed. Graham wrote to Diageo Plc, parent company of D&G, seeking the timelines of the deal with Heineken and the information available to Red Stripe directors.

Blair is however denying the claims, stating that he has been purchasing shares all his life and that he made no attempt whatsoever to benefit from the transaction. His statement was supported by Red Stripe chairman Richard Byles who says he has the highest regard for the brewery’s managing director.

Blair has worked with the Red Stripe for more than 20 years. During his tenure as managing director over the last three years, Blair raised the return on equity from the mid-teens to the mid-twenties.

He will continue as managing director at Desnoes & Geddes makers of Red Stripe beer despite demitting his position on the board.