Published: Wed, November 15, 2017
Economy | By Melissa Porter

Shell further reduces its interest in Woodside

The energy giant said in a statement today that its Shell Energy Holdings Australia Limited (SEHAL) had entered into a deal with two investment banks to sell 71.6m Woodside shares for £18.2 each.

Australian shares ended lower for a third straight day on Tuesday, as weak oil prices and an equity stake sale in Woodside Petroleum Ltd dampened sentiment.

Shell shares were up 0.8 percent at 1525 GMT.

Medical device maker Fisher & Paykel Healthcare Corp closed at an all-time high after a British court ruled that a patent held by rival Resmed Inc as invalid on Monday.

Earlier this month, Shell said it had managed to earn more than $25 billion from non-core asset sales under its programme ending next year.

In November 2010, Shell sold 10 percent of the issued capital of Woodside, bringing its stake down to 24.27 percent. "Proceeds from the sale will contribute to reducing our net debt". At the time of writing, Woodside Petroleum Ltd (ASX:WPL) has 0.042482 ROA.

Equity capital markets teams from a number of global banks had been asked earlier on Monday to submit bids and lock in cornerstone investors, a banking source requesting anonymity told Reuters. This was further diluted to 23.08 percent after Shell decided not to participate in Woodside's dividend re-investment programme.

The shares to be sold represent 64 per cent of Shell's interest in Woodside.

Last year, the Anglo-Dutch major concluded a change in Shell's level of involvement in Woodside's financial and operating policy decisions resulted in Shell no longer having significant influence.

Shares of Woodside Petroleum, Australia's largest independent oil and gas company, ended 3.2 percent down at A$31.2.

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