Deadline for possible Dechra bid extended three weeks for further due diligence
Dechra Pharmaceuticals has extended the deadline for a possible all-cash takeover offer from Swedish private equity firm EQT, worth £4.6bn.
The Northwich-based vet products group revealed on April 13 that it had entered discussions with EQT.
Under the terms of the takeover code, EQT has a deadline of 5pm today (May 11) to confirm whether or not it intends to acquire the business.
Dechra said this morning that, with its support, EQT has made substantial progress towards completing its confirmatory due diligence and preparing the documentation necessary to implement a firm offer.
It added that, to facilitate EQT to finalise its due diligence, Dechra has requested, and the Panel on Takeovers and Mergers, has consented to, an extension to deadline.
Consequently, EQT is now required, by not later than 5pm, London time, on June 2, 2023 either to announce a firm intention to make an offer for Dechra, or to announce that it does not intend to make an offer.
This revised deadline may be extended further, at the request of the board of Dechra and with the consent of the Takeover Panel.
The board of Dechra confirmed to EQT its intention to recommend an offer on these terms.
In the event that a firm offer is made, it is currently contemplated that the Private Equities investment department – the Abu Dhabi Investment Authority PED – of the Abu Dhabi Investment Authority, would be a co-investor with EQT.
At the time the offer was announced, in April, Panmure Gordon analysts, Dr Mike Mitchell and Dr Julie Simmonds, said the confirmation of talks is a strong reminder of the unrecognised value within the animal health sector.
