This article was originally published by TheStreet on June 17, 2014
By Sarfaraz A. Khan.
NEW YORK (TheStreet) --The Anglo-Dutch oil giant Royal Dutch Shell (RDS.A_) (RDS.B_)has finally decided to sell a majority of its stake in a company it unsuccessfully tried to takeover in 2001.
Woodside Petroleum (WOPEY_) is Australia's second-largest oil and gas producer after BHP Billiton (BHP_) and is 23.1% owned by Shell.
Shell is selling 19% of Woodside for nearly $5.7 billion. It has been trying to reduce its stake ever since the Australian government thwarted Shell's takeover attempt more than 10 years ago.
Shell is selling 19% of Woodside for nearly $5.7 billion. It has been trying to reduce its stake ever since the Australian government thwarted Shell's takeover attempt more than 10 years ago.
This move means positive things for both companies. Through the asset sale, which is a part of Shell's divestiture program, the company will increase its focus on its two projects in Australia that underpin the future of its liquefied natural gas, or LNG, program while allowing it to reward its shareholders through dividends and buybacks.
