March 23, 2012

Dutch dairy cooperative Royal FrieslandCampina completed the acquisition of a controlling stake of 60.7% in Alaska Milk--leading dairy company in the Philippines-for EUR227 million (US$300 million).

The company had earlier announced that it was planning to increase its stake from 8.1% to 68.9%, as part of its strategy to strengthen its presence in Asia. The deal provides the company with access to the Philippines market, boosting its annual revenues by 8% to EUR2.7 billion (US$3.57 billion)
 

FrieslandCampina is currently present in Thailand, Indonesia, Malaysia, China, Vietnam, India, Hong Kong and Singapore.

The company purchased 535.7 million shares held by the Uytengsu Family-founders and controlling shareholders of Alaska Milk-at PHP24 (US$0.56) per share.

In compliance with regulatory requirements, FrieslandCampina will launch a tender offer for the remaining 276.7 million outstanding shares in Alaska Milk at an identical price, totalling approximately US$400 million.

Alaska Milk will be incorporated into FrieslandCampina's Consumer Products International business group, which produces and sells dairy products in the Middle East and Africa. Its president and CEO Wilfred Steven Uytengsu will continue to lead the management team.

Alaska Milk, which produces canned milk, powdered milk, and ready-to-drink milk, generates annual revenues of EUR200 million (US$264 million) and runs a production facility in San Pedro, Laguna.