Royal FrieslandCampina is increasing its stake from about 8.1% to 68.9% via a purchase of the shares held and controlled by the Uytengsu Family, the founders and controlling shareholders of Alaska Milk Corporation. In compliance with regulatory requirements, FrieslandCampina will launch a tender offer for the remaining outstanding publicly traded shares. Mr. Wilfred Steven Uytengsu will continue to lead Alaska Milk's management team as president and chief executive officer and will continue as a director of the company. With this acquisition FrieslandCampina adds a market of approximately 100 million consumers to its existing consumers' base.
This transaction strengthen FrieslandCampina's position in Asia, which is a strategic growth area for the dairy multinational. FrieslandCampina is already present in Thailand, Indonesia, Malaysia, China, Vietnam, India, Hong Kong and Singapore. It raises FrieslandCampina's Consumer Products International annual global revenues from approximately € 2.5 billion to nearly € 2.7 billion. This acquisition likewise provides the company with a platform that fits into its strategic " route2020goals ".
With annual revenues of over P 12B, Alaska Milk has emerged as one of only two major players in the Philippine dairy industry. For 40 years it has displayed a strong growth, consistent brand leadership in the liquid canned milk category and a strong and growing position in powdered milk. It has also recently expanded into higher value-added milk products, particularly in the Ready-to-Drink milk category. The company employs over one thousand people and operates a manufacturing facility in San Pedro, Laguna.
In the three - year period ending 2011, AMC's stock price increased by 53% compounded annually compared to the PSE index' 33% annual growth over the same period while the company's cash dividend yield averaged 5.4%.
Wilfred Steven Uytengsu, president and chief executive officer of Alaska Milk said: "We expect this historical agreement to propel our company to its next stage of growth. We expect the product concepts developed by FriesiandCampina to strengthen our positions in all dairy categories. In the future, integration provides Alaska Milk access to an international dairy company that has production plants in 25 countries and with products that are sold in over 100 countries worldwide. Most notably,FriesiandCampina's growing commitment to the Philippines is a vote of confidence for our country and its bright prospects."
Cees `t Hart, chief executive officer of Royal FrieslandCampina said: "Adding Alaska Milk gives us a strong, high-growth platform in the Philippines and gives us access to a market of about 100 million customers.lt also confirms our international aspiration and determination in entering markets similar to various other Asian countries where FrieslandCampina's capabilities can create value. Alaska Milk's ambition to build a value - added dairy business fits the objectives of FriesiandCampina. AMC's management has already built up an outstanding position in the Philippine market. Together, we can expand this position by introducing proven FrieslandCampina - concepts that have worked in other parts of the world."
Tender offer
In compliance with regulatory requirements, Royal FrieslandCampina will launch a tender offer for the remaining outstanding publicly traded shares at an identical at a price per share of up to Php24.00, subject to certain pre-closing adjustments. The transaction will be funded by FrieslandCampina through a short-term debt financing, preserving balance sheet flexibility. The transaction is expected to close around May 2012 and is subject to customary closing conditions, including receipt of certain regulatory approvals.
FriesiandCampina was advised by J.P. Morgan (S.E.A.) Ltd. and the Uytengsu Family was advised by Houlihan Lokey.
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