Dechra, a British veterinary pharmaceuticals maker, said it had entered into talks with private equity group EQT for a possible offer in a 4.63 billion pounds ($5.80 billion) all-cash deal.
Dechra shareholders would receive 4,070 pence per share in cash at that price, which represents a 46.6% premium to Dechra’s closing price on Thursday of 2,776 pence per share. The possible offer was announced after the market close.
Dechra said it has informed EQT that it will recommend the possible offer if EQT announces a firm intention to make an offer.
Dechra said in February it saw its full-year operating profit at the lower end of analyst views as wholesalers in the U.S. have been reducing inventory levels.
Dechra said it is in discussions that if a firm offer is made, Abu Dhabi Investment Authority’s Private Equities Department would be a co-investor with EQT.
EQT has until May 11 to announce a firm intention to make an offer for Dechra, the Northwich-based company said.
Source: Reuters.com