Shell has announced an agreement to further shed part of its stake in Australian firm Woodside Petroleum as part of its $30billion divestment programme.
Shell’s subsidiary, Shell Energy Holdings Australia Limited (SEHAL), has entered into an underwriting agreement with two investment banks, for the sale of 71.6 million shares in Woodside.
The deal 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.
It is expected to result in total pre-tax proceeds of approximately $1.7 billion (A$2.2 billion).
The sale is expected to complete on November 14.
Shell’s Chief Financial Officer, Jessica Uhl, said: “This sale is another step towards the completion of our three-year $30billion 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.
“Proceeds from the sale will contribute to reducing our net debt.”
Upon completion of the sale, SEHAL will 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, with limited customary exceptions.