- PE approaches for Dechra and Network International
- Dechra all-cash potential offer implies 47% premium
- Network International receives preliminary offer
Private equity deals can be like the proverbial number nine bus, nothing arrives for ages then two come along at once.
After the market close on Thursday, Dechra Pharmaceuticals (DPH) said it was in discussions with private equity group EQT regarding a possible all-cash offer for the veterinary pharmaceuticals firm at £40.70, representing a 47% premium to the prior closing price.
The shares surged 36% on Friday to £37.73 leaving them around 8% shy of the offer price, reflecting uncertainty a firm offer will be forthcoming.
The company said that if an offer were to be made, Sovereign Wealth fund ADIA (Abu Dhabi Investment Authority) would be a co-investor with EQT. The Dechra board indicated it is prepared to recommend the offer to shareholders subject to the finalisation of the relevant terms.
Prior to the takeover approach Dechra shares had lost a third of their value over the last year and stood 51% below the peak of £52.75 reached in the middle of 2021.
The sharp drop in the shares meant they fell out of the FTSE 250 index in the latest reshuffle in December 2022.
CONSORTIUM APPROACH
Earlier on Thursday afternoon, digital payment solutions group Network International (NETW) said it had received a preliminary and conditional proposal from a private equity consortium comprising CVC Capital Partners and Francisco Partners Funds.
The shares jumped 23% on heavy volume to 310p and added a further 3% on Friday. Under UK takeover rules the consortium has until 11 May to make a firm offer or walk away.
According to Reuters, Network International has received several approaches in recent months, including from CVC. The shares have drifted over the last couple of years after the company completed the acquisition of African rival DPO Group in 2021.
DPO Group reportedly had links to German payments company Wirecard which was embroiled in an accounting scandal.
