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Capital Group buys 5% stake in Hungarian drugmaker Egis

Capital Group Cos., a Los Angeles-based investment company whose units include American Funds, has bought a 5.05% stake in Egis Nyrt, Hungary's second-largest pharmaceutical company.

Capital Group Cos. bought 393,452 Egis Nyrt shares on February 13, the drugmaker said in a statement to the Budapest Stock Exchange. The stake is worth Ft 9.4 billion (€37 million) at yesterday's closing price. Budapest-based Egis is majority owned by France's Laboratoire Servier.

The purchase makes Capital the third-largest shareholder, also behind asset manager Mark Mobius's Frankin Resources Inc., which owns 17.03% through three different funds, according to Bloomberg Data. Capital Group's American Funds unit runs Growth Fund of America, the largest US fund. (Bloomberg)