(AOF) – Herbalife Nutrition announced that on January 3, 2021, it reached an agreement to buy back approximately $ 600 million of the company’s common stock held by billionaire activist Carl C. Icahn and some of its subsidiaries (Icahn Enterprises ), at a purchase price of $ 48.05 per share. This is the closing price of Herbalife Nutrition common shares on December 31, 2020, the last trading day before the execution of the purchase agreement. The purchase of the shares will be funded by cash from Herbalife Nutrition and its existing credit facility.
The announced buyback is part of the company’s share buyback program unveiled in 2018 which, including the shares to be bought back as part of this transaction, will have enabled the company to acquire a total of approximately $ 1.5 billion of its securities.
The transaction is expected to close no later than January 7, 2021, and Icahn Enterprises will then own approximately 8 million common shares of Herbalife Nutrition, or approximately 6% of the outstanding shares.
The five directors previously appointed by Icahn Enterprises all resigned from the board of directors of the company on January 3, 2021
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