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Shell cuts its stake in Australia's Woodside in $5bn sale | Shell cuts its stake in Australia's Woodside in $5bn sale |
(about 11 hours later) | |
Energy giant Royal Dutch Shell is cutting its stake in Australia's Woodside in a share sale that will net it some $5bn (£3bn). | Energy giant Royal Dutch Shell is cutting its stake in Australia's Woodside in a share sale that will net it some $5bn (£3bn). |
Shell will sell around 156.5 million shares, which represents 19% of Woodside's issued share capital. | Shell will sell around 156.5 million shares, which represents 19% of Woodside's issued share capital. |
Upon completion, the European firm's stake in Woodside will be reduced from its current 23.1% to 4.5%. | Upon completion, the European firm's stake in Woodside will be reduced from its current 23.1% to 4.5%. |
Shell has said in a statement it wants to focus its "Australian growth in directly owned assets." | Shell has said in a statement it wants to focus its "Australian growth in directly owned assets." |
The company's chief executive Ben van Buerden added: "It doesn't change our view of Australia as an important player on the global energy stage, or Shell's central role in the country's energy industry. | The company's chief executive Ben van Buerden added: "It doesn't change our view of Australia as an important player on the global energy stage, or Shell's central role in the country's energy industry. |
We continue to see Australia as an important place for us to invest and grow our business." | We continue to see Australia as an important place for us to invest and grow our business." |
Earlier this year Shell reported a 44% drop in first-quarter profits after it wrote down the value of refineries in Asia and Europe. | Earlier this year Shell reported a 44% drop in first-quarter profits after it wrote down the value of refineries in Asia and Europe. |
Share transactions | Share transactions |
The cutting of its Woodside stake will take place over two stages. | The cutting of its Woodside stake will take place over two stages. |
Shell will offload a 9.5% stake or 78.3 million Woodside shares to institutional investors, at a price of $41.35 Australian dollars per share, by Wednesday. | Shell will offload a 9.5% stake or 78.3 million Woodside shares to institutional investors, at a price of $41.35 Australian dollars per share, by Wednesday. |
It will also be selling another 78.3 million shares to Woodside in a buyback programme, at $36.49 Australian dollars per share. | |
The buyback is subjected to approval by Woodside's shareholders, as well as independent expert opinion that the transaction is "fair and reasonable" to all Woodside shareholders. | The buyback is subjected to approval by Woodside's shareholders, as well as independent expert opinion that the transaction is "fair and reasonable" to all Woodside shareholders. |
Chief executive of the Australian gas and oil firm, Peter Coleman, said in a statement submitted to the Australian stock exchange: "This combined transaction is an efficient and disciplined use of capital and creates value for all our shareholders. | Chief executive of the Australian gas and oil firm, Peter Coleman, said in a statement submitted to the Australian stock exchange: "This combined transaction is an efficient and disciplined use of capital and creates value for all our shareholders. |
"The combined transaction will also increase our liquidity in the market and resolve the uncertainty in relation to Shell's shareholding that has existed for several years." | "The combined transaction will also increase our liquidity in the market and resolve the uncertainty in relation to Shell's shareholding that has existed for several years." |
The firm had originally sold one-third of its Woodside stake in November 2010, for $3.3bn. |
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