FrieslandCampina to acquire controlling stake in Indonesia’s Ultrajaya

Dutch dairy producer FrieslandCampina has entered into a definitive agreement to acquire a controlling interest in Indonesia’s PT Ultrajaya Milk Industry & Trading Company Tbk (ULTJ). The transaction will be facilitated through FrieslandCampina International Holding B.V. and involves a strategic merger that integrates PT Frisian Flag Indonesia (FFI) into the Ultrajaya corporate group.

To execute the deal, Ultrajaya plans a rights issue of approximately 7.9 billion new shares at an execution price of Rp2,150 per share. Through a non-cash asset contribution, existing controlling shareholders will transfer FFI shares to Ultrajaya, making FFI a wholly owned subsidiary. Following the rights issue, FrieslandCampina’s ownership stake in Ultrajaya is projected to be between 28.95% and 30.81%.

Because the acquisition results in a change of control by a foreign entity, Indonesian capital market regulations require FrieslandCampina to launch a mandatory cash tender offer for the remaining minority shares on the Indonesia Stock Exchange. Despite the ownership shift, Ultrajaya will remain a publicly listed company, with its headquarters and operations continuing to be based in Bandung, West Java.