On Friday Herbalife announced the results of its tender offer. The company said it was “oversubscribed” with 49.7 million shares tendered. It expects to accept 11.4 million shares at a cash purchase price of $52.50 per share or roughly $600 million. Herbalife will fund the stock repurchase from its term loans, credit facilities or cash on hand.
As the largest Herbalife shareholder Icahn repeatedly battled Pershing Square’s Bill Ackman over his bearish stance on the nutritional supplement maker.
In March Icahn took a victory lap on his profitable Herbalife investment, telling CNBC he had “a billion” dollar profit in the stock.
The investor seemed to reference Ackman’s exit of his losing bearish bet as a reason why he’s reducing his stake.
“We believe Herbalife’s business is stable, the short-sellers have largely exited, and the Company is well-positioned for the future,” Icahn said in the Friday filing.
Herbalife did not immediately respond to a request for comment.