Frisian Flag Indonesia merges with Ultrajaya Group to expand regional presence

INDONESIA – FrieslandCampina and PT Ultrajaya Milk Industry have entered a strategic partnership in which 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.

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.

FrieslandCampina’s Members’ Council, which represents the member dairy farmers who collectively own FrieslandCampina through the cooperative, has approved the transaction.

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

The merge 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.

Per Indonesian regulations, FrieslandCampina will, after obtaining a controlling interest in Ultrajaya, make a mandatory tender offer in cash to minority shareholders of Ultrajaya.

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