PT Ultrajaya Milk Industry & Trading Company Tbk (ULTJ) has set its rights issue price at Rp2,150 per share, targeting Rp16.94 trillion through the issuance of 7.88 billion new shares in early 2027. The transaction is expected to bring Dutch dairy company FrieslandCampina International Holding B.V. (FCIH) into control of Ultrajaya through a share exchange involving Frisian Flag Indonesia (11/11).

Ultrajaya Rights Issue Targets Rp16.94 Trillion at Rp2,150 per Share

According to Ultrajaya's prospectus, the company will issue approximately 7.88 billion new shares at Rp2,150 each. The offering price is 3.7% below ULTJ's share price at the end of the first trading session on Wednesday, November 11, 2026.

Under the rights issue mechanism, existing shareholders will receive 11,517 rights (HMETD) for every 15,200 shares they own. Each HMETD will allow its holder to purchase one new ULTJ share at the exercise price of Rp2,150.

Of the targeted Rp16.94 trillion, approximately Rp14.57 trillion will come from non-cash contributions in the form of shares in Frisian Flag Indonesia. The remaining Rp2.37 trillion is expected to come from cash contributions by public shareholders participating in the rights issue.

FrieslandCampina Investment Changes Ultrajaya Ownership Structure

Three new investors are expected to enter Ultrajaya through the transaction: FrieslandCampina International Holding B.V. (FCIH) from the Netherlands, Blue Waves Group Ventures Pte. Ltd. (BWG), and PT Bahtera Wiraniaga Internusa (BWI).

The three investors will acquire and exercise the HMETD belonging to existing ULTJ shareholders, most of whom are members of the Prawirawidjaja family, the company's principal shareholders.

Their non-cash contribution of Rp14.57 trillion will consist of 24,440 shares, representing 100% ownership of Frisian Flag Indonesia (FFI). Through this share exchange arrangement, Ultrajaya will gain control of FFI.

At the same time, FCIH is expected to take control of ULTJ from President Director Sabana Prawirawidjaja, despite potentially holding a slightly smaller ownership percentage.

Following the transaction, FCIH could own between 28.95% and 30.81% of ULTJ. Meanwhile, Sabana Prawirawidjaja's ownership could decrease to between 30.25% and 32.19%.

The remaining Rp2.37 trillion of the rights issue target is expected to come from public shareholders who exercise their subscription rights. Shareholders who do not exercise their HMETD could experience ownership dilution of up to 43.11%.

Ultrajaya Rights Issue 2027 Schedule and Key Dates

Ultrajaya has announced the following schedule for its planned rights issue in January 2027:

• January 8, 2027: Cum-HMETD date in the regular and negotiated markets.
• January 11, 2027: Ex-HMETD date in the regular and negotiated markets.
• January 12, 2027: Cum-HMETD date in the cash market and recording date for shareholders eligible to receive HMETD.
• January 13, 2027: Ex-HMETD date in the cash market.
• January 14–20, 2027: HMETD trading period.

Ultrajaya Projects Revenue Growth of 137% After Frisian Flag Transaction

Ultrajaya expects its collaboration with the Frisian Flag Group to expand its market share and business potential. The company also expects the transaction to strengthen its operational capacity and create synergies in the dairy products and financial sectors through the acquisition of FFI.

"This is also expected to create added value not only for shareholders but also for consumers," the company's management stated in an official announcement.

Management acknowledged that the increase in assets and equity following the transaction could affect the company's return levels. However, Ultrajaya expects its return on assets (ROA) and return on equity (ROE) to increase and gradually recover.

The additional revenue from FFI is projected to increase Ultrajaya's annual revenue by up to 137%, while profit is estimated to grow by as much as 115.4%. The transaction is also expected to improve the company's cash flow.

"The transaction carried out by the company is expected to increase net cash flow by approximately 30.12% to 42.32% compared with the period before the proposed transaction," Ultrajaya's management stated.

As of the end of September 2026, Ultrajaya had recorded net profit of Rp1.43 trillion, representing a 49% year-on-year increase. The growth was supported by higher revenue following stronger market demand, including demand from the government's MBG (Free Nutritious Meals) program.

PHOTO: RRI

This article was created with AI assistance.

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