Ultrajaya and Frisian Flag Indonesia enter into a strategic partnership in Indonesia
Royal FrieslandCampina N.V. (“FrieslandCampina”) today announces that FrieslandCampina and PT Ultrajaya Milk Industry Tbk (“Ultrajaya”) have agreed to enter into a strategic partnership where Frisian Flag Indonesia (“FFI”) will become part of the Ultrajaya Group. As part of Ultrajaya – Indonesia’s leading ready-to-drink beverage group – FFI will join a broader, more resilient platform serving consumers across the archipelago. This step supports FrieslandCampina’s mission to nourish children and families in Asia by growing access to the goodness of dairy nutrition, responsibly. Both companies will continue to operate alongside each other as separate businesses, each with its own brands, portfolios, and organisations, with an intensified cooperation focused on longterm value creation.
As part of the transaction, FrieslandCampina will obtain a controlling interest in Ultrajaya which will only be effective upon completion of the transaction. The transaction has been approved by FrieslandCampina’s Members’ Council, which represents the member dairy farmers who collectively own FrieslandCampina through the cooperative. Closing of the transaction remains subject to customary approvals, including Ultrajaya’s shareholders meeting approval and approval from the authorities in Indonesia.
Ultrajaya is envisaged to remain an Indonesian listed company, with its headquarters, leadership and day-to-day operations based in Bandung, Indonesia. Sabana Prawirawidjaja, Ultrajaya’s co-founder, will continue his current role as President Director of Ultrajaya. The Prawirawidjaja family will continue to remain substantial long-term shareholders in Ultrajaya.
Building a stronger Indonesian dairy platform
This step also reinforces the position of FrieslandCampina’s Business Group Asia, which focuses on building strong, locally rooted dairy platforms in growth markets. As part of this business group, FFI contributes to a strengthened Ultrajaya that combines strong local leadership with FrieslandCampina’s long-term partnership approach and expertise in dairy development. Both companies share a long-term commitment to Indonesian consumers and high-quality nutritional dairy products.
Frisian Flag Indonesia has been part of Indonesian society for over a century and is widely recognised as a trusted local dairy company. The partnership with Ultrajaya builds on strong Indonesian leadership and capabilities, contributing dairy expertise and investment while growth and decision-making remain firmly rooted in Indonesia.
Other information
Per Indonesia regulations, FrieslandCampina will, after obtaining a controlling interest in Ultrajaya, make a mandatory tender offer in cash to minority shareholders of Ultrajaya for which further details will be disclosed through the website of the Indonesian Stock Exchange (IDX).