Herbalife International
January 4, 2021
Herbalife Nutrition said it will repurchase about 600 million dollars of common shares from Carl C. Icahn of Icahn Enterprises at 48.05 dollars a share. The company said it will pay with cash on hand and existing credit facilities.
In 2013, while the company was under pressure from short sellers, it agreed to give Icahn Enterprises five board seats as long as the stake was at least 14 million common shares. After this repurchase, Icahn is expected to hold about 8 million common shares, and his representatives will leave the board.
Icahn said he first invested more than eight years earlier because he believed in the strategy, products, and business model, and that he thought the shares were undervalued. He said the company needed an activist then, but that the time for activism has passed. He said he will remain a shareholder.
The buyback is part of a 2018 repurchase program. Including this transaction, which the company expected to finish the week of the announcement, total repurchases would be about 1.5 billion dollars.
Chairman and chief executive John Agwunobi said the repurchase reflects the strength of the business and long-term growth prospects. He thanked Icahn and the departing board representatives and said Icahn will remain one of the largest shareholders.