• Private Equity EQT is discussing a possible takeover offer of a UK veterinary pharmaceutical company Dechra Pharmaceuticals Plc (OTC: DCHPF) (OTC: DPHAY), sending shares gaining over 30% on Friday morning in response.
•  Dechra Pharmaceuticals confirmed that it has entered into discussions with the Swedish private equity giant about a possible all-cash offer. 
• The bid would value Dechra, listed on the FTSE 250, at roughly £4.6 billion.
• In February, Dechra said revenue in the six months to December 31, 2022, rose by 14% to £377.4 million, up from £332.4 million a year ago. Pre-tax profit fell sharply to £29.7 million from £53.4 million, as operating profit fell to £44.6 million from £57.4 million a year before.
• The firm said it expects full-year underlying operating profit to be at the lower end of analyst expectations.
• Dechra's share price hit a record high in August 2021, riding a new wave of demand from pet owners in the wake of the pandemic.
• However, the company's share price since halved from its peak almost two years ago.
• Dechra said it had confirmed to EQT that it would be prepared to recommend the possible cash offer to its shareholders should the PE firm announce a firm intention to make an offer.
• Under the terms of the Possible Offer, Dechra shareholders would receive 4,070 pence per ordinary share in cash.
• Founded in 1989 as the National Veterinary Services, a venture capital-funded business, Cheshire-based Dechra floated on the London Stock Exchange in 2000.
• Under UK takeover rules, EQT has until May 11 to decide whether to make a firm offer, Dechra said in a statement after the London market's close on Thursday. Abu Dhabi Investment Authority may invest in any deal alongside EQT.

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This article UK Veterinary Drugmaker Dechra Pharma In Discussions With Private Equity For £5B Takeover originally appeared on Benzinga.com

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