Cheshire-based international veterinary drugs giant Dechra Pharmaceuticals said late on Thursday it has entered into discussions with Swedish private equity firm EQT over a possible £4.63 billion cash takeover offer for Dechra.

Under the possible offer, Dechra shareholders would receive £40.70 per share in cash at that price, a roughly 47% premium to Dechra’s closing price on Thursday.

Northwich-based Dechra said it has informed EQT that it will recommend the possible offer if EQT announces a firm intention to make an offer.

EQT has until May 11 to announce a firm intention to make an offer.

The private equities investment department of the Abu Dhabi Investment Authority would be a co-investor with EQT.

“The board of Dechra and EQT X EUR SCSp and EQT X USD SCSp (collectively referred to as EQT) note the recent press speculation and confirm that they have entered into discussions with respect to a possible all-cash recommended offer for the entire issued, and to be issued, ordinary share capital of Dechra by EQT,” said Dechra.

“Under the terms of the possible offer, Dechra shareholders would receive 4,070 pence per ordinary share in cash.

“In the event that a firm offer is made, it is currently being discussed that the Private Equities investment department (Abu Dhabi Investment Authority PED) of the Abu Dhabi Investment Authority (ADIA), through a wholly-owned subsidiary of ADIA, would be a co-investor with EQT.”