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Shell selling Woodside shares

Written by  OE Staff Monday, 13 November 2017 10:08

Shell took another step towards completing its three-year, US$30 billion divestment program by selling shares in Woodside Petroleum to equity investors.

Shell subsidiary, Shell Energy Holdings Australia, initially said today (13 November) it had entered into an underwriting agreement with two investment banks, for the sale of 64% of its interest (71.6 million shares) in Woodside, representing 8.5% of the issued capital in Woodside, at A$31.10 per share, resulting in total pre-tax proceeds of about $1.7 billion (A$2.2 billion). Due to strong demand from equity investors, however, Shell announced in a separate statement today that it would sell 111.8 million shares for pre-tax proceeds of $2.7 billion (A$3.5 billion).

Shell says the move is part of its strategy to reshape its business strengthen its financial network. Sale proceeds will be used to reduce Shell’s net debt, Jessica Uhl, chief financial officer of Shell, said in the statement.

Completion is expected to take place on 14 November, with settlement expected on 16 November.

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