Shell has entered into a A$2.2bn (US$1.7bn) agreement with two investment banks to sell a stake in the Australian LNG operator Woodside Petroleum. The transaction encompasses 64% of its interest in Woodside and 8.5% of the issued capital in Woodside, at a price of A$31.10 per share. The sale is expected to be completed in November 2017 and upon its completion, Shell would continue to own a 4.8% interest in Woodside through its subsidiary Shell Energy Holdings Australia Limited (SEHAL). The agreement fits into Shell's three-year US$30bn divestment programme and will help the company to reduce its net debt.
In November 2010, Shell already sold a 10% stake in Woodside, retaining a 24.27% interest in the company (interest diluted to 23.08% because of Shell’s decision not to participate in Woodside’s dividend re-investment programme). Shell sold another 9.5% stake in June 2014, retaining 13.58% (diluted to 13.28%).
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