Alaska Milk Corporation (AMC) Stock Price Surge

Wonder why Alaska Milk Corporation (PSE Ticker : AMC) surge to 25% in just 1 trading days?

It’s because Royal Friesland Campina (RFC) announced that it’s increasing it’s stake in the AMC from 8.1% to 68.9%.

Royal Friesland Campina (RFC), the leading dairy company in the Netherlands with sales of almost €9 billion and with 19,000 employees operating in 25 countries.

Also, Friesland Campina will launch a tender offer for the remaining outstanding publicly traded shares. As what I read in the news, RFC will launch a tender offer for the remaining outstanding publicly traded shares at an identical price per share of up to P24.

With annual revenues of P12 billion, Alaska Milk has emerged as one of  major players in the Philippine dairy industry. It’s stock price increased by 53 percent in just 3 years period, while the company’s cash dividend yields an averaged 5.4 percent.

For those who are holding Alaska Milk (AMC) in their portfolio, I guess there is only one good phrase to say and it’s their famous slogan for more than a decades  “Wala pa ring tatalo sa Alaska – (Nothing beats Alaska – in English).”

Of course it’s hard to let go of a good company like AMC. Actually, I am planning to hold it for more than 5 years. But with the RFC tender offer of 24php, I guess it’s an offer that I could not refuse.

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