Shell share price: Group offloads Vivo Energy stake for $250m

on Dec 23, 2016
Updated: Oct 21, 2019

Royal Dutch Shell (LON:RDSA) has made yet another disposal this week, offloading its 20-percent stake in African downstream company Vivo Energy. The latest sale is part of the Anglo-Dutch oil major’s plan to shed $30 billion worth of assets as it looks to shore up its balance sheet in the wake of its acquisition of former London-listed peer BG Group.

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Shell’s share price closed flat at 2,213.50p today in shortened trade, ending the session largely in line with the broader London market, with the benchmark FTSE 100 index adding 0.06 percent to close at 7,068.17 points. The group’s shares have gained just under 45 percent this year, as compared with about a 13-percent rise in the Footsie.
Shell announced in a statement today that it had inked a deal with Vitol Africa to sell its 20-percent shareholding in Vivo Energy for $250 million. The transaction is expected to complete during the first half of next year, subject to regulatory approval. The Anglo-Dutch group noted that as part of the deal, a long-term brand licence agreement has been renewed with Vitol to ensure that the Shell brand will remain visible in more than 16 countries across Africa.

Commenting on the disposal, Shell noted that it was in line with the group’s “strategy to concentrate its downstream operations where it can be most competitive”. The sale comes after Shell wrapped up the disposal of a majority stake in a refining company in Malaysia yesterday, having also agreed to sell its aviation business in Australia earlier during the week. The oil major is also thought to be close to offloading assets in the North Sea and Gabon.
According to MarketBeat, Shell currently has a consensus ‘buy’ rating, and an average price target of 2,178.39p.
As of 14:47 GMT, Friday, 23 December, Royal Dutch Shell Plc ‘A’ share price is 2,213.50p.


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