The special committee of Herbalife’s board of directors has rejected a takeover bid of US$38 per share by Whitney, stating that it does not represent sufficient value for the company.
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On 2 February Herbalife received an unsolicited offer from Whitney to acquire the company in an all cash transaction. Whitney currently owns approximately 27% of Herbalife’s outstanding common stock.
“The board recognizes and values the leadership that Whitney has provided Herbalife. We remain open-minded about ways to achieve appropriate value for the company, and would certainly consider an improved proposal from Whitney. However, in the absence of such a proposal, the board expects the company to continue to grow and prosper,” said Leroy T. Barnes Jr., chairman of the special committee.
“Herbalife’s continued momentum, enabled by the outstanding performance of our distributors and underscored by the recent receipt of a new license to operate in China and the recently announced marketing agreement with the LA Galaxy soccer team, further reinforces the special committee’s determination that a $38.00 offer is too low.”
As a Cayman Islands registered corporation, any sale would require the support of a majority of shareholders and 75% in value of the voted shares.
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