Published: Tue, November 14, 2017
Finance | By Loren Pratt

Shell divests part of Woodside stake

The sale represents 64 per cent of Shell's stake in Woodside and 8.5 per cent of Woodside's issued capital, Shell said. The total consideration would be AUD3.50 billion, around USD2.70 billion.

Shell said the the sale of 71.6 million shares would produce pre-tax proceeds of about $US1.7 billion (A$2.2 billion).

Shell decided that due its reduced holding it was no longer having any significant influence over Woodside and changed its stake from an associate holding to an investment. The transaction is expected to close on Tuesday.

The divestment program is an important part of Shell's strategy to reshape itself, as well as deliver a world class investment case and strengthen its financial network.

The desire to split has been mutual, with Woodside happy to remove the overhang that had capped its share price for years, and Shell steadily reducing its stake as part of its global asset sale, which has included Australian refineries and service stations.

It will retain a 4.8% interest after the latest deal completes on later and has agreed not to sell any of its remaining shares for a minimum of 90 days.

This follows previous sales of shareholdings in Woodside by the Anglo-Dutch firm.

In June 2014, Shell sold another 9.5 percent of Woodside's issued shares, dropping its interest to 13.28 percent after again opting out of the dividend reinvestment scheme.

Shell "A" shares were up 0.7% on Monday at 2,435.00 pence, with "B" shares up 0.7% at 2,475.00p.

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