Will Dollar General’s Dominant Shareholders Buy After the Offering?

With over 5 months of trading completed this year, Dollar General Corporation’s (NYSE:DG) shares are up 21.15 percent. On Tuesday, the company announced pricing to underwrite a secondary public offering of 30 million common shares at $46.75 per share. They will be sold by certain existing shareholders, not by the company, and they will not receive any proceeds.

In addition, some selling shareholders will allow underwriters an option to purchase up to 4.50 million additional shares. The offering is expected to close on June 11, 2012.

With the secondary public offering, will Dollar General’s largest shareholders increase their holdings? 330 institutional firms indicated owning shares of Dollar General Corporation (NYSE:DG) in Q1 2012. These firms reported owning a total of 318.462 million shares on 03/31/2012 . The shares closed at $46.20 on 03/31/2012.

Here are the ten largest positions in Dollar General Corporation at the end of March 31st, 2012.

Kohlberg Kravis Roberts & Co. L.P. held 104,259,541 shares on 03/31/2012 worth $4,816,790,874. This brought the portfolio total to 45.03%.

Goldman Sachs Group Inc held 31,703,228 shares on 03/31/2012 worth $1,464,689,158. This brought the portfolio total to 0.69%.

Price T Rowe Associates Inc /MD/ held 18,958,008 shares on 03/31/2012 worth $875,859,984. This brought the portfolio total to 0.26%.

FMR LLC held 16,249,848 shares on 03/31/2012 worth $750,742,990. This brought the portfolio total to 0.14%.

Lone Pine Capital LLC held 13,446,688 shares on 03/31/2012 worth $621,236,996. This brought the portfolio total to 3.78%.

Canada Pension Plan Investment Board held 13,095,265 shares on 03/31/2012 worth $605,001,253. This brought the portfolio total to 3.56%.

Ubs Global Asset Management Americas Inc held 7,547,000 shares on 03/31/2012 worth $348,671,406. This brought the portfolio total to 0.5%.

Marsico Capital Management LLC held 5,823,430 shares on 03/31/2012 worth $269,042,470. This brought the portfolio total to 0.9%.

Vanguard Group Inc held 4,476,612 shares on 03/31/2012 worth $206,819,478. This brought the portfolio total to 0.03%.

Pennant Capital Management LLC held 4,426,516 shares on 03/31/2012 worth $204,505,043. This brought the portfolio total to 4.62%.

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