Shell to sell part of its stake in Woodside Petroleum for $1.7 billion

Royal Dutch Shell (RDSa.L) said on Monday it was selling part of its stake in Woodside Petroleum Ltd (WPL.AX) to equity investors for about $1.7 billion (1.30 billion pounds).

Shell said its unit, Shell Energy Holdings Australia Limited (SEHAL), had entered into an agreement with two investment banks for the sale of 71.6 million shares in Woodside for 31.10 Australian dollars (18.19 pounds) per share. 

The company said that represented 64 percent of its interest in Woodside and 8.5 percent of the issued capital in Woodside. 

Upon completion of the sale, SEHAL will continue to own a 4.8 percent interest in Woodside.

Shell has so far sold or agreed to sell over $26 billion as part of its three-year $30 billion asset sales programme launched following the acquisition of BG Group in 2015. 

Woodside’s $US2.68bn buy-back is based on a share price of $36.49, representing a 14 per cent discount to Woodside’s average price over past five days.

The sell-down is expected to be completed by 10am (AEST) tomorrow, at which time Woodside shares will resume trading.

he buy back is subject to shareholder approval, an independent expert’s report and consent under a number of Woodside’s facility agreements
.

Woodside’s board is recommending that shareholders vote in favour of the buy back, subject to the independent expert concluding it is fair and reasonable.

Shell chief executive Ben van Beurden said the sale was part of the company’s drive to improve capital efficiency and to focus its Australia growth in directly owned assets.