MANILA, Philippines—Dutch dairy giant Royal Friesland Campina (RFC) will take over a controlling stake in local milk manufacturer Alaska Milk Corp. from the Uytengsu family as part of its expansion in Asia.
In a disclosure to the Philippine Stock Exchange on Friday, RFC said it would hike its equity interest in Alaska Milk to 68.9 percent from about 8.1 percent by buying the shares held and controlled by the Uytengsu family and will make a tender offer for other publicly listed shares.
However, Wilfred Steven Uytengsu will continue to lead the local company as its president and chief executive officer and will remain as a director, the disclosure added.
The acquisition price was not disclosed.
Based on Friday’s stock market close, Alaska Milk had a market capitalization of P14.1 billion. Its shares were up by 25 percent to P20 per share ahead of the announcement of the deal.
“The transaction strengthens Friesland Campina’s position in Asia, which is a strategic growth area for the dairy multinational,” the disclosure said, noting that this deal would add the Philippines’ about 100 million consumers to its market base.
RFC is already present in Thailand, Indonesia, Malaysia, China, Vietnam, India, Hong Kong and Singapore. RFC expects to raise its annual global revenues to about 2.7 billion euros from 2.5 billion euros with this acquisition.
With annual revenues of over P12 billion, Alaska Milk is one of the two major players in the Philippine dairy industry.
The 40-year-old company employs over 1,000 people and operates a manufacturing facility in San Pedro, Laguna.
In the three-year period ending 2011, Alaska Milk’s stock price increased by 53 percent on a compounded basis annually, outpacing the 33 percent annual rise in the PSE index over the same period. It has maintained a cash dividend yield averaging at 5.4 percent in the last three years.