The Dutch cooperative folds its Indonesian unit Frisian Flag Indonesia into Ultrajaya and gains a majority in the company, founded in 1971.

Dutch dairy cooperative FrieslandCampina is taking a majority stake in Indonesian peer PT Ultrajaya Milk Industry in a deal described as a «strategic partnership». The co-op owns brands including Milner cheese and Chocomel drinks. Just Food reports.

Frisian Flag Indonesia folds into Ultrajaya

FrieslandCampina’s Indonesian milk and flavoured-drinks unit Frisian Flag Indonesia (FFI) will be folded into Ultrajaya, which assumes the co-op’s 78.09% holding in FFI. Partners Blue Waves Group Ventures (BWG) and PT Bahtera Wiraniaga Internusa transfer their shares in FFI to Ultrajaya in exchange for a rights issue.

FrieslandCampina: «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, with an intensified cooperation focused on long-term value creation.»

«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. 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», — the Dutch co-op added

Deal mechanics

Ultrajaya is issuing more than 7.8 billion shares priced at Rp2,150 ($0.12) each; the company remains listed on the Jakarta Stock Exchange. 

After the majority stake closes — subject to Indonesian regulatory approval — FrieslandCampina will make a mandatory cash tender offer to minority shareholders. 

A shareholder vote is scheduled for 27 October. The Prawirawidjaja family remains a substantial long-term shareholder; co-founder Sabana Prawirawidjaja continues as president director.

Ultrajaya’s financials

Founded in 1971, Ultrajaya produces UJ-branded UHT milk, teas and health drinks at two factories — West Bandung and Cibitung, both in West Java. Last year’s sales: Rp8.77tn (vs Rp8.87tn); operating profit +16.7% to Rp1.68tn; net profit +19% to Rp1.37tn.

Ultrajaya (exchange filing): «The proposed transaction is expected to facilitate greater collaboration in product development, nutrition expertise and local dairy industry development initiatives, while preserving the parties’ respective trademarks, businesses and organisational structures.»

FrieslandCampina’s 2025 results

CEO Jan Derck van Karnebeek called 2025 «challenging», marked by «geopolitical developments and a significant drop in commodity dairy prices». FrieslandCampina’s revenue rose 3.6% to €13.4bn ($15.2bn), but operating profit fell 3.8% to €507m; net result €328m (+2.2%). 

The MEPA business (Asia, Middle East, Pakistan, Africa) faced «pressure on volumes».

Source: Just Food