Servier Group has announced a voluntary public offer (to be made by its wholly-owned subsidiary Arts et Techniques du Progrès) to purchase all outstanding shares in its majority-owned subsidiary Egis Pharmaceuticals for $126 per share in cash.

The offer represents a premium of 33% over the closing price of Egis shares on the Budapest Stock Exchange on Sept. 23, and a premium of 38% over the average trading price of Egis over the six months ended Sept. 23.

Servier Group, a privately-held, research-led pharmaceutical group with global turnover of $5.3 billion in 2012, has owned a majority stake of approximately 51% in Egis since 1995. Servier Group is an innovation-led pharmaceutical group, but also controls three generic pharmaceutical affiliates including Egis, operating in separate markets and each with its own separate management, identity and business strategy.

Egis is a pharmaceutical company in Central and Eastern Europe and the CIS countries, with a portfolio of generic pharmaceuticals. Servier Group does not intend to make any significant changes to the strategy or operations of Egis, which is already well-integrated into Servier Group’s operational structure and will continue to operate under its own identity.

“We remain committed to our strategy of focusing on continued innovative pharmaceutical R&D,” said Dr. Jacques Servier, president and founder of Servier Group. “Egis is the only listed company within Servier Group, but has no need to use the equity capital market for financing, therefore we believe being listed on the Budapest Stock Exchange makes little financial sense for Egis. Our two companies have an 18-year shared history and we know and value highly Egis’ management team and its strategy.”