Soroban Capital Partners Discloses New Position in Sinclair Broadcast Group Inc (SBGI)

Eric W. Mandelblatt‘s Soroban Capital Partners revealed a new position stake in Sinclair Broadcast Group Inc (NASDAQ:SBGI). According to a recent 13G filing, the fund currently owns 3.80 million shares, a 5.30% passive stake in the company.

Founded  in 1986, by Julian Sinclair Smith, Sinclair Broadcast Group Inc (NASDAQ:SBGI) is one of the largest and most diversified television broadcasting companies in the United States. Operating 167 television stations across the country, the company’s television group reaches almost 39.00% of US television households and includes FOX, ABC, and NBC affiliates. In addition, Sinclair owns four radio stations. A month ago the company’s Board of Directors approved a new $150.0 million share repurchase authorization
to be accessed once its existing authorization is exhausted. In 2013 Sinclair Broadcast Group Inc (NASDAQ:SBGI) generated net income of $73.50 million or $1.18 per share, compared to $1.78 per share in 2012. Recently announcing a quarterly cash dividend of $0.15 per share, the company is expected to produce earnings of $0.18 per share in the first quarter of 2014. Sinclair’s stock currently trades at $26.xx per share, around 40.xx times its EPS, compared to the industry average of 4.30.   The average analyst recommendation for the company’s stock is “Buy”.

Robert Hockett‘s Covalent Capital Partners and Martin D. Sass‘ Md Sass also hold significant positions in Sinclair Broadcast Group Inc (NASDAQ:SBGI), with the former owning 440,000 shares worth $15.70 million and the latter owning nearly 2.00 million shares worth $71.35 million.

A former Goldman Sachs energy analyst, Eric W. Mandelblatt founded the New York based Soroban Capital Partners in 2010. The fund manages an equity portfolio with a total value of approximately $11.50 billion, 40.00% of which is invested in the Services Sector. On December 17, 2014, Soroban Capital signed an agreement with Keith Meister‘s Corvex Capital, which would render Eric Mandelblatt to join Williams Companies, Inc. (NYSE:WMB)’s Board of Directors. Soroban Capital owns almost 17.50 million shares in Williams, the position worth $672.50 million.

Disclosure: none

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