Royal Dutch Shell has upsized its previously announced agreement to sell shares in Woodside Petroleum following strong demand from institutional investors.
Earlier today, the company said its unit, Shell Energy Holdings Australia Limited (SEHAL) will sell 71.6 million shares in Woodside , representing 64 percent of its interest in Woodside and 8.5 percent of the issued capital in Woodside, at a price of A$31.10 per share.
However, due to the demand, the company decided to sell a total of 111.8 million shares, representing 13.28 percent of the issued share capital of Woodside and the entirety of SEHAL’s total shareholding in Woodside, for total pre-tax proceeds of $2.7 billion (A$3.5 billion), despite claiming that it will not dispose of any of its remaining shares in Woodside for a minimum of 90 days from completion of the sell-down.
Completion is expected to take place on November 14, 2017, with settlement expected on November 16, 2017.
Speaking about the initial sale of SEHAL’s shareholding in Woodside, Shell’s CFO, Jessica Uhl , said, the sale is a step towards the completion of the company’s three-year $30 billion divestment programme, and that the proceeds will go towards the reducing the company’s debt.