Altai Capital Increases Stake in RealD (RLD)

Rishi Bajaj, Toby Symonds, and Steve Tesoriere‘s Altai Capital has disclosed, in a new filing with the Securities and Exchange Commission (SEC), an ownership of around 4.83 million shares of RealD (NYSE:RLD), slighly up from around 4.53 million shares reported as at the end of 2013. The stake amasses 9.80% of the company’s common stock.

Altai Capital owned 919,812 shares of Reald Inc. (NYSE:RLD) as of the end of third quarter of 2013. The fund also changed the nature of the stake to activist, and stated that it has discussed with the company’s management regarding the company’s value, and might engage in further negotiations.

RealD (NYSE:RLD) is a leading global licensor of 3D and other visual technologies. The company’s extensive intellectual property portfolio is used in applications that enable a premium viewing experience in the theater, the home and elsewhere.

RealD (NYSE:RLD) licenses its RealD Cinema Systems to motion picture exhibitors that show 3D motion pictures and alternative 3D content. The company also provides its RealD Display, active and passive eyewear, and RealD Format technologies to consumer electronics manufacturers, content producers and distributors to enable the delivery and viewing of 3D and other premium content on a variety of visual displays and devices.

The company reported the results for its third quarter of fiscal 2014 ended December 31, 2013, on February 5. Total revenue was $55.4 million, comprised of license revenue of $35.6 million and product and other revenue of $19.8 million. For the third quarter of fiscal 2013, total revenue was $46.9 million, comprised of license revenue of $30.3 million and product and other revenue of $16.6 million.

Brian Bares’s Bares Capital Management disclosed ownership of around 7.96 million shares of RealD (NYSE:RLD) as of the end of September 2013.

As of September 30, 2013, Altai Capital owned around 18.43 million shares of Sunedison Inc. (NYSE:SUNE), with a reported value of about $146.89 million. Also the fund owned around 5.47 million shares of Emulex Corporation (NYSE:ELX).

Disclosure: none

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