Profit from the sale will be used to reduce debt
Royal Dutch Shell plc has decided to sell part of its stake in Woodside Petroleum Limited to equity investors.
As part of this, Shell Energy Holdings Australia Limited (SEHAL), Shell’s subsidiary, signed an underwriting agreement with two investment banks, for the sale of 71.6 million shares in Woodside, for a total price of approximately $1.7 billion (A$2.2 billion). This represents 64.0% of its interest in Woodside and 8.5% of the issued capital in Woodside, at a price of A$31.10 per share.
SEHAL, upon completion of the sale, will continue to own a 4.8% interest in Woodside.
Jessica Uhl, Shell’s Chief Financial Officer, said “This sale is another step towards the completion of our three-year $30 billion divestment program, 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.” PWKD15112017