Shares in Dechra Pharmaceuticals have soared after the UK veterinary medicine group confirmed it was in talks over a possible £4.6bn all-cash offer from Swedish private equity firm EQT.
Dechra’s shares rose 36 per cent to 3,772p in early London trading on Friday, propping up the price in the FTSE 250 group. Its shares have barely moved over the past 12 months, slipping 1.2 per cent since April 2022.
Under the proposal announced on Thursday, Dechra shareholders will receive 4,070 pence per ordinary share in cash, a 47 per cent premium to its April 13 closing price of 2,770p.
“The board of Dechra has confirmed to EQT that it is prepared . . . to provide a recommendation at the possible offer price indicated should EQT announce a firm intention to make an offer,” Dechra said.
Dechra, one of the biggest sellers of veterinary medicine, benefited from repeated Covid-19 lockdowns that prompted households to spend more on their pets.
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