Woodside Petroleum Limited's (ASX:WPL) biggest shareholder Shell Energy Holdings Australia will cut its stake in the oil and gas producer from 23.1 per cent to a maximum of 4.5 per cent.
Subject to shareholder approval Woodside will buy back about 9.5 per cent of its capital from Shell for $US2.68 billion.
Woodside says the proposed buy-back price is based on a share price of $36.49 which is a 14 per cent discount to the company’s share price over five days ahead of today’s announcement.
The selective buy back will be put to a shareholder vote at an extraordinary general meeting which is expected to take place in August.
Shell has also inked a deal to sell down about 9.5 per cent of Woodside through an underwritten sell-down to institutional investors at $41.35 per share which is expected to be finalised tomorrow.
Shares in Woodside Petroleum last traded at $42.85 before the announcement was made.
Woodside Petroleum recorded a net profit of more than $2 billion in the full 2013 calendar year.
