Herbalife plans a stock split along with will change its name

Products are prepared for shipment at the Herbalife Los Angeles distribution center in Carson, California.

Patrick T. Fallon | Bloomberg | Getty Images

Products are prepared for shipment at the Herbalife Los Angeles distribution center in Carson, California.

Herbalife said on Wednesday in which plans to change its corporate name, refinance debt along with effect
a 2-for-1 stock split to boost shareholder returns, sending its shares to an all-time high.

The nutritional supplement maker also said in which intends to launch a “modified Dutch auction” tender offer, seeking to repurchase between $450 million along with up to $650 million of its outstanding common stock.

The moves come a few months after activist investor Bill Ackman bought options to sell shares as a fresh way to bet against the company, after closing a $1 billion short position he took in 2012.

For years, Ackman has labeled the company a pyramid scheme along with said in which will eventually crumble under regulatory scrutiny over its operating product, which he alleges benefits distributors more than the actual users of products.

Herbalife’s shares have instead risen since Ackman made the $1 billion bet, forcing him to close in which position along with limit his losses through options to sell shares.

Ackman’s hedge fund Pershing Square Capital Management was not immediately available to comment.

Herbalife said on Wednesday in which intends to change its name to Herbalife Nutrition Ltd along with would likely also refinance a portion of its $1.15 billion outstanding convertible notes due Aug. 15, 2019.

The forward stock split will be Herbalife’s first in seven years along with will double the number of outstanding shares, boosting liquidity.

The proposals to split its stock along with change its name will be put to a vote at the company’s Annual General Meeting on April 24.

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