Shell is to upside its sell down of shares in Australian firm Woodside Petroleum following “strong demand” from institutional investors.
The move is part of the supermajor’s $30billion global 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 111.8 million shares.
This is an increase in the initial sell-off of 71.6 million shares in Woodside.
The deal represents all of Shell’s interest in Woodside.
It is expected to result in total pre-tax proceeds of approximately total $2.7 billion up $1 billion on the first announced offering.
Accordingly, the sale is expected to complete on November 16 not 14 as initially expected.
Shell’s Chief Financial Officer, Jessica Uhl, said at the time of the initial sell down: “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.”
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.