Scout Capital, the hedge fund founded and co-managed by Adam Weiss and James Crichton, purchased a 7.8 percent stake or 7,200,257 shares of SeaWorld Entertainment Inc (NYSE:SEAS) based on its latest 13G filing with the Securities and Exchange Commission (SEC). The news was first reported by Market Folly.
SeaWorld Entertainment Inc (NYSE:SEAS) is a theme park and entertainment company in the United States. It provides educational, interactive, and personal experience with a blend of imagination, all focused on nature that enables its visitors in the theme park to celebrate, connect with and care for nature. It operates 11 destination and regional theme parks in the country and owns a portfolio of brands including SeaWorld, Shamu, and Busch Gardens that are recognized globally.
During its recently concluded initial public offering (IPO), SeaWorld Entertainment Inc (NYSE:SEAS) offered 29.9 million shares for $27 per share. The company raised $253.8 million from the offering after deducting underwriting discounts and commissions, and used some of the proceeds to redeem $140 million in aggregate principal of its 11 percent senior notes due on 2016, which were issued by its subsidiary SeaWorld Parks & Entertainment, Inc.
SeaWorld Entertainment Inc (NYSE:SEAS) also used approximately $46.3 million of the proceeds for the one-time payment to the affiliates of The Blackstone Group L.P. (NYSE:BX) related to the termination of a management advisory agreement.
Aside from SeaWorld Entertainment Inc (NYSE:SEAS), Scout Capital also previously acquired a 6.94 percent stake or 2,266,972 shares of Post Holdings Inc (NYSE:POST), the parent company of Post Foods, which manufactures ready-to-eat cereals.
Last month, the company announced its decision to close its manufacturing facility in Modesto, California to improve its operational efficiency and position its future growth. The board of directors of Post Holdings Inc (NYSE:POST) recently approved a quarterly dividend of $0.81 per share.
During the fourth quarter of 2012, Scout Capital’s assets under management were approximately $5.8 billion. Its largest position in its portfolio was Mondelez International (NASDAQ:MDLZ), which accounts for 12.1 percent followed by Procter & Gamble Company (NYSE:PG), which represents 8.54 percent.
The hedge fund also has a large stake in Google Inc (NASDAQ:GOOG), Sensata Technologies (NYSE:ST), and Sally Beauty Holdings (NYSE:SBH). The stocks represent 6.58 percent, 5.79 percent, and 5.01 percent in its portfolio last quarter, respectively.