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Well, just as well that I did not sell back in Feb; I have taken some off the table today to bank a decent profit in SIPP.
The deal will probably take 6m to get regulatory approval, maybe more, hence the discount of 7.5% to the potential offer, I would expect that to close to 3% on a firm offer and then reduce further as completion nears.
The big question is whether a trade buyer is willing to pay more than PE….watch the press over the next couple of weekends.
RNS OFFER 4,070
Below 7/9/21 @ 4800 first buy
Below the slice 4226 slice on 3rd March last year .
The PB Placing 21/7/22 was 3,430 so they have done OK can not see an OO to holders at the time .
In the FTSE 250, Dechra Pharmaceuticals surged 38% to 3,830 pence.
Late Thursday, the veterinary pharmaceutical company confirmed that it has entered into discussions with private equity firm EQT for a possible cash takeover offer.
Under the terms of the possible offer, Dechra shareholders would receive 4,070 pence per ordinary share in cash. The offer price is a 49% premium to Thursday's closing price.
"There can be no certainty that any firm offer will be made for Dechra," the company said.
£40 just been paid.
premarket price nearly £40
Zak, looks like you were hearing correctly - sp rise nailed on today!
Bit of volume suddenly this afternoon.
I'm starting to hear rumours that several PE firms are thinking about bidding for DPH
in the mail
https://www.thisismoney.co.uk/money/investing/article-11819969/MIDAS-SHARE-TIPS-Petcare-firm-Dechra-day-again.html?ico=mol_desktop_money-newtab&molReferrerUrl=https%3A%2F%2Fwww.dailymail.co.uk%2Fmoney%2Findex.html&_ga=2.254749320.1246059182.1677968099-1843241439.1674940599&_gl=1*x8vnw4*_ga*MTg0MzI0MTQzOS4xNjc0OTQwNTk5*_ga_XE0XLFFF16*MTY3Nzk2ODA5OC40LjEuMTY3Nzk2ODEzMC4wLjAuMA..
Oddly there was no profit warning despite eps halving…..however that is after some one off costs associated with the acquisitions……time will tell if this is a bout of M&A induced indigestion or something more serious.
As bad results go, a drop of 10% is nothing unusual and probably better than deserved…..the saving grace was an increased dividend, the analysts will be working out whether that is sustainable but on a low yield it should be.
Shocking . Would not see that coming from the trading update and clearly neither did the market. Knocks the management credidibilty somewhat.
I can't see how this can hold key support at £25.50; organic growth is pretty much flat, they have significant debt of £500m of which £237.2m is exposed to variable interest rates which is likely costing them 6%+ at present, diluted EPS was just 19.86p which means they are on a PE of 65... It's horrendously expensive.
I'm looking at this falling back into the long term rising trend band that it traded in from 2011-2016, which sits at £13-16, that would represent a much more reasonable entry price albeit you'd still be paying >30 PE at the bottom of that range... It's a tempting short but I'll leave that to the hedge funds!
Bit of a caning for shareholders. I am inclined to take the hit on the chin today and sell.
good call,got in myself at 26.61, probably sell half at 30.00
Dipped a toe in today in anticipation of a better year ahead
Good that management was able to execute the second deal highlighted in July.
Buying dollar assets may prove to be timely with the dollar seeming heading towards parity with sterling.
Two acquisitions at around $200m each, one agreed and a second under negotiation.
The piedmont buy seems a little speculative but assume there is confidence in the to be launched products. The second seems to be a commercially positive deal.
Primary Bid .
Dechra to raise GBP180 million to acquire Piedmont Animal Health
Wed, 20th Jul 2022 18:34
(Alliance News) - Veterinary products firm Dechra Pharmaceuticals PLC on Wednesday said it is planning a fundraise for an acquisition, as it progresses talks for another potential buy.
FTSE-100 listed Dechra said it has agreed to acquire Piedmont Animal Health Inc for USD210 million, or GBP175 million, in cash.
Greensboro, North Carolina-based Piedmont makes products for the companion animal market, which will add to Dechra's portfolio of innovative and novel solutions for vets and pet owners.
To fund the acquisition, Dechra plans to raise GBP180 million via the issue of 5.2 million shares at 3,430 pence each.
The shares represent around 4.8% of its existing share capital, with the placing price being an 8% discount to the closing share price on Wednesday in London of 3,730.00 pence.
Dechra also said it plans to undertake PrimaryBid offer at the same price.
The capital fundraise will give its balance sheet the flexibility to execute on its acquisition pipeline "including on one near term opportunity which the company is in exclusive discussions to acquire with an acquisition price similar to Piedmont," Dechra says.
If completed, the acquisition of Piedmont and the potential other acquisition will become accretive to earnings per share from financial 2025, and "materially accretive thereafter", the firm said.
The pharmaceutical company also said there has been no change to its outlook since its update in early July, where it reported strong trading that remains in line with expectations.
Investec Bank PLC will serve as financial adviser, sole broker and bookrunner for the placing.
Sold that top up back 4226p
Positive comments on results I topped up at 3762p, opened up but then fell below recent lows .
Traders on it maybe .
The numbers are as good as management promised. The SP rating is still quite racy, somewhere above 50x
The 25% fall over the last couple of months is more to do with rising interest rates and what investors are willing to pay than a change in company performance…..may have to wait a year for the eps multiple to fall back to around 30x before much growth in sp can be expected….but this remains a quality share to own for the medium to long term.
was expecting a recovery here - maybe tomorrow?
DPH Bid:3,910p Offer:3,942p Change:126
Dechra Pharmaceuticals delivered strong interim results amid increased consumer spending on pets during Covid-19 restrictions.
For the six months that ended December 31, Dechra posted pretax profit of GBP53.4 million, up 51% from GBP35.4 million a year before. This was on revenue of GBP322.4 million, up 7.5% from GBP299.8 million.
The Northwich, Cheshire-based firm declared an interim dividend of 12.00 pence, up 8.1% from 11.11p.
Looking ahead, Dechra said trading at the start of the second half remains strong, especially in major markets which are returning to "historic levels" of growth.
"Future prospects remain excellent as we strengthen the group's infrastructure, continue to outperform markets and identify and deliver new strategic growth opportunities," said Chief Executive Officer Ian Page.