Dechra Pharmaceuticals in takeover talks with PE firm EQT

Dechra Pharmaceuticals confirmed on Thursday that it has entered into discussions with private equity firm EQT about a possible all-cash recommended offer for the company.

Under the terms of the offer, Dechra shareholders would receive 4,070p per share in cash.

Dechra said that if a firm offer is made, it is currently being discussed that the private equities investment department of the Abu Dhabi Investment Authority (ADIA), through a wholly-owned subsidiary of ADIA, would be a co-investor with EQT.

The veterinary pharmaceuticals group said that having considered the offer with its financial adviser, Investec, it has confirmed to EQT that it is prepared to provide a recommendation at the possible offer price indicated should the PE firm announce a firm intention to make an offer on such terms.

It added that there can be no certainty any firm offer will be made and that a further announcement will be made as appropriate.

Shares closed up 1.6% at 2,733.53p. The announcement was made after the close of markets.