Carl Icahn sells over half his Herbalife stake for USD600M

NEW YORK (CNA) – Activist investor Carl Icahn sold over half his stake in Herbalife Nutrition back to the company for USD600 million at USD48.05 a share and has given up the five seats on the firm’s board held by his representatives, Herbalife said in a statement.

Icahn had a 15.5 per cent stake in Herbalife as of September 30, 2020. The latest deal is expected to close by January 7, after which Icahn Enterprises will hold about eight million of Herbalife’s shares, representing a stake of about six per cent, the statement added.

The Wall Street Journal reported on Sunday that in recent days Icahn sold about 10 per cent of his stake back to the multi-level marketing company, whose products include dietary supplements.

Icahn’s remaining stake is worth about USD400 million, according to the Wall Street Journal.

Icahn began buying Herbalife shares in 2013 while extolling the company and had since been its largest shareholder.

In 2013, Herbalife and Icahn Enterprises entered into a support agreement that allowed Icahn Enterprises to have five board seats for as long as it held at least 14 million Herbalife shares.

With Icahn’s stake now falling below the threshold of 14 million shares, the support agreement has been terminated and the activist investor’s board representatives have stepped down, Herbalife said on Sunday.