Neil DennisAnglo-Dutch oil and energy group Royal Dutch Shell has said it is to sell nearly two-thirds of its remaining stake in Australia's Woodside Petroleum for £1.3bn.
In a filing to the London Stock Exchange, Shell said it was to sell 71.6 million shares in Woodside at A$31.10 per share (£18.20) which would value the equity stake at £1.303bn, or US$1.7bn.
Shell said that the stake represented 64% of its interest in Woodside and 8.5% of the total issued capital in the Australian oil company. The sale was expected to complete on 14 November.
CFO comment
Shell’s chief financial officer, Jessica Uhl (left), said “This sale is another step towards the completion of our three-year $30bn divestment programme, which is an important part of our strategy to reshape Shell, to deliver a world class investment case, and to strengthen our financial framework. Proceeds from the sale will contribute to reducing our net debt.”
Following the sale, Shell said its remaining interest in Woodside Petroleum would stand at 4.8% of the company. Shell has agreed that it will not dispose of any of its remaining shares for a minimum of 90 days from completion of the sell down.
Market reaction
Shells shares on the blue-chip FTSE 100 index were trading 1.13% higher in mid-morning trade in London at £24.84.
Picture courtesy of Royal Dutch Shell