FrieslandCampina to Acquire Controlling Stake in Indonesia’s ULTJ

CORPORATE ACTION -  Global dairy powerhouse Royal FrieslandCampina N.V. has announced a landmark cross-border definitive agreement to acquire a controlling interest in PT Ultrajaya Milk Industry Tbk (ULTJ), accelerating institutional consolidation within Southeast Asia’s rapidly growing ready-to-drink beverage market.

According to a corporate press release issued on Friday (18/9/2026), the transaction will integrate the operations of Frisian Flag Indonesia (FFI) into the expanded Ultrajaya corporate framework.

The deal has already achieved formal clearance from FrieslandCampina’s Member Council, which represents the cooperative's collective dairy farmer owners.

However, the final change of control remains strictly subject to regulatory sign-offs and general shareholder approvals in Jakarta.

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Mandatory Tender Offer Triggered for Minority Shareholders

Under Indonesia's strict capital market regulations enforced by the OJK, the acquisition of a controlling interest by a foreign entity will automatically trigger a mandatory tender offer (MTO).

FrieslandCampina will be legally obligated to launch a cash tender offer to buy out ULTJ's remaining minority retail shares, with execution pricing and timelines slated to drop on the Indonesia Stock Exchange (IDX) infrastructure grid soon.

Despite the major corporate ownership shift, the consumer giant will maintain its domestic market roots:

• Public Listing Status: ULTJ will remain a publicly listed entity on the IDX.
• Corporate Governance: Corporate headquarters, operational facilities, and daily leadership remain anchored in Bandung, West Java.
• Executive Continuity: Co-founder Sabana Prawirawidjaja will continue his institutional role as President Director, with the founding Prawirawidjaja family retaining a highly significant, long-term equity block.

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Capitalizing on a 34.5% First-Half Revenue Explosion

For international equity desks and consumer-sector asset managers, this consolidation moves at a highly opportunistic phase. ULTJ logged stellar financial performance during the first half of the year, with revenues exploding 34.5% year-on-year to reach a massive IDR 5.49 trillion.

By executing this deal, FrieslandCampina's specialized Business Group Asia aggressively de-risks its regional supply chain, merging its global institutional dairy R&D capabilities with Ultrajaya's absolute domestic logistics dominance. Over the current multi-year holding horizon, macro desks will track the upcoming MTO valuation metrics to evaluate if this cash injection sets up ULTJ as the definitive, recession-proof consumer staple play across emerging Asian markets.

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