Shell Sells Stake in Woodside for $5.32 Billion
By Vittorio Hernandez | June 17, 2014 11:40 AM EST
Oil giant Royal Dutch Shell is selling its majority shares in Woodside Petroleum for $5.32 billion after tax. That is equivalent to 157 million shares out of 190 million, in effect reducing its stake in the oil and gas company to 4.5 per cent from 23 per cent.
Royal Dutch Shell shares took a knock after the report that its Nigeria business was weakening on heightened security concerns (Reuters)
In offloading its shares of Woodside, van Beurden said it does not mean it lacks confidence in the Australian oil and gas giant as key energy producer.
"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.
Woodside would buy back half of the shares at $2.85 billion, which represents 9.5 per cent of the issued capital shares. That would mean Woodside is buying it at a 14 per cent discount of $39.49 per share on the average price of the stock in the five days leading to June 16.
The remaining 78.27 million shares will be sold to institutional investors by two investment banks at $41.35 a share.
Woodside Petroleum Chief Executive Peter Coleman said the sale and buy-back would deliver value to shareholders by enhanced earnings, cash flow and dividends per share.
"This combined transaction is an efficient and disciplined use of capital and creates value for all our shareholders ... In parallel, it allows us to optimize the company's near-term capital structure, while maintaining the capacity to continue to develop existing projects and make additional investments in new growth opportunities," he added.
YouTube/ABC News (Australia)
To contact the editor, e-mail:
Most Popular Slideshows
- Typhoon Rammasun Claims 18 Lives in China, Incurs $4.32B Losses (PHOTOS)
- Malaysia Airlines MH17: Vital Black Boxes Finally Land in Hands of Malaysian Authorities, Rebels Announce Ceasefire (PHOTOS/VIDEOS)
- Photos from the Crash Site of Malaysia Airlines MH17 In Ukraine
- Selena Gomez Turns 22 Today, Celebrates Early without Justin Bieber: Top 12 Interesting Facts About the Singer [SEE PHOTOS]
Join the Conversation
- Malaysian Airlines Flight 17: Air Carrier to Give $5,000 Assistance to Victims’ Families; Bankruptcy Looms as 2 Air Mishaps Would Cost Firm Minimum $80.55 M Compensation
- Foxconn And Pegatron Corp Readies For Apple's iPhone 6 Mass Production This Month
- KFC & McDonald’s Accused of Serving ‘Expired’ Meat to Customers
- Malaysian Airlines Ukraine Tragedy Hits Asian Stock Markets
- Fairfax Chief Executive Greg Hywood Reiterates Commitment to Radio; No Merger With Macquarie Radio
- Fresh Leak Hints iPhone 6 Price and Release Date; 4.7-Inches iPhone 6 Sapphire Display Scratched in Test; New Spigen Cases Out
- iPhone 6 2014 Release Date Very Soon as Apple Orders 120M New iPhones from Foxconn – Report
- Google Nexus 6 on Release Date Will Sport 2K Display Panel & Lower Price Tag – Report
- Motorola Moto G Vs. Xiaomi Mi3 – Low in Price, High -level Features
- FCC Approves Sony Xperia Z3 for U.S. Market
- Sony PlayStation 4 Outsells a Resurgent Xbox One in June
- Killer Xiaomi Mi4 at $369 Likely to Come With 5.0-Inch Display, Snapdragon 801 Processor, 3GB RAM and More