The Hague-based LNG giant Shell has entered into a $1.7 billion (A$2.2 billion) deal with two investment banks to sell a stake in Australian LNG operator Woodside.
Shell’s subsidiary, Shell Energy Holdings Australia Limited (SEHAL), will sell 71.6 million shares in Woodside, representing 64% of its interest in Woodside and 8.5% of the issued capital in Woodside, at a price of A$31.10 per share.
The sale is expected to complete on November 14, Shell said in a statement, adding that upon completion of the sale, SEHAL would continue to own a 4.8% interest in Woodside.
SEHAL has agreed 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, the statement said.
“This sale is another step towards the completion of our three-year $30 billion 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,” Shell’s Chief Financial Officer, Jessica Uhl , said.
“Proceeds from the sale will contribute to reducing our net debt,” Uhl added.
Worth mentioning, Shell sold back in November 2010 about 10% of the issued capital of Woodside and in June 2014 the company sold approximately 9.5% of Woodside’s issued share capital.