Alaska Milk unloads P12.86-billion stocks to foreign partner

MANILA, Philippines – Dutch dairy giant Royal FrieslandCampina N.V. has completed the purchase of a controlling stake in Alaska Milk Corp. through a block sale coursed through the Philippine Stock Exchange yesterday.

Based on a disclosure to the bourse, Alaska said it unloaded to its foreign partner 535.545 million shares, representing 61 percent of the company, at P24 each share or a total of P12.857 billion.

The purchase will shore up Friesland’s stake in Alaska from 8.1 percent to a controlling 68.9 percent.

Friesland will subsequently launch a tender offer for the remaining 276.7 million Alaska shares at the same price offered to the majority owners. This is pursuant to the mandatory tender offer requirement with respect to acquisitions involving 35 percent of a listed Philippine entity.

After a tight grip for more than 40 years, the Uytengsu family has relinquished control of the Philippines’ leading milk maker to prepare it for the next stage of growth.

Friesland chief executive officer Cees ‘t Hart said the acquisition would provide them a strong, high-growth platform in the Philippines and access to a market of around 100 million customers. The acquisition would also allow Alaska to further expand its position in Asia, which is a strategic growth area for the dairy multinational.

FrieslandCampina already has presence in Thailand, Indonesia, Malaysia, China, Vietnam, India, Hong Kong and Singapore. It also produces and sells dairy products in the Middle East and Africa.

Wilfred Steven Uytengsu will stay on as president and chief executive officer of Alaska.

Friesland sees its annual global revenues growing from 2.5 billion euros to nearly 2.7 billion euros with the deal.

With annual revenues of more than P200 million, Alaska has emerged as the leading player in the Philippine milk industry for more than 30 years. It has also recently expanded into higher value-added milk products, particularly in the ready-to-drink milk category.

The company employs about a thousand people and has a production facility in San Pedro, Laguna.