Uytengsus cash in, give up Alaska Milk to Dutch partner
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MANILA, Philippines - Control over the Philippines' biggest milk manufacturer has passed on to Dutch hands, after the Uytengsus sold their stake in Alaska Milk Corp. (AMC) in a deal worth P12.8 billion.
The Uytengsus bailed out of AMC after the company's stock price surged 25 percent on Friday to hit a one-year high of P20.50. The buyer, Royal FrieslandCampina N.V., however offered to acquire the Uytengsus' 535.7 million shares at P24 a share.
In the last three years, AMC's stock clocked in a 53 percent annual compunded increase, faster than the Philippine Stock Exchange index's 33 percent.
Before it bought out the Uytengsus, the Dutch firm already had an 8.1 percent stake in AMC. With the additional acquisition, FrieslandCampina would increase its ownership to 68.9 percent.
"We expect this historical agreement to propel our company to its next stage of growth. We expect the product concepts developed by FrieslandCampina to strengthen our position in all dairy categories," said AMC chief executive officer Wilfred Steven Uytengsu, who will continue to lead the company's management team and remain a director of the firm.
"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, FrieslandCampina's growing commitment to the Philippines is a vote of confidence for our country and its bright prospects," Uytengsu said.
FrieslandCampina's acquisition of a controlling stake in AMC requires the former to launch a tender offer for the remaining shares in the Philippine company held by minority stockholders.
With this acquisition of AMC, the Dutch company boosts it market by 100 million consumers. "It also confirms our international ambition to enter markets where FrieslandCampina can create value. AMC’s management has already built up an outstanding position in the Philippine market. Together we can expand this position by introducing tried and tested FrieslandCampina concepts that have been successful in other parts of the world," said Cees ‘t Hart, Royal FrieslandCampina chief executive officer.
The acquisition bolsters FrieslandCampina’s position in Asia, which is a strategic growth area for the dairy multinational. Besides the Philippines, the Dutch company also operates in Thailand, Indonesia, Malaysia, China, Vietnam, India, Hong Kong and Singapore.
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