Shell share price: Group mulls offloading stake in Canadian Natural

on May 25, 2017
Updated: Oct 21, 2019

Royal Dutch Shell (LON:RDSA) is planning to offload a roughly C$4.1-billion (£2.3 billion) stake in Canadian Natural Resources Ltd (CNRL), Reuters has revealed. The Anglo-Dutch group acquired the interest as part of a deal to retreat from Canada’s oil sands earlier this year.

Shell’s share price has been little changed in London this morning, having inched 0.08 percent higher to 2,119.60p as of 10:24 BST, largely in line with gains in the broader UK market, with the benchmark FTSE 100 index currently 0.08 percent higher at 7,521.01 points. The group’s shares have added more than a quarter to their value over the past year, but have given up some five percent in the year-to-date.

Sources with knowledge of the matter told Reuters this week that Shell had been interviewing investment banks to hire a financial adviser for the sale of its stake in CNRL. The deal could be one of the biggest-ever equity sales in Canada. The people noted that the Anglo-Dutch oil major was weighing whether to sell its Canadian Natural stake in one block or phase it out.
The potential deal will come after Shell agreed to sell most of its Canadian oil sands assets for $8.5 billion. As part of the transaction, the company acquired about 98 million Canadian Natural shares, or about 8.8 percent of CNRL’s outstanding shares, which are currently valued at about C$4.1 billion.
Shell, which acquired former London-listed peer BG Group last year, has been looking to divest $30 billion worth of assets as it looks to pay down debt. The Anglo-Dutch oil major has already sold or agreed to sell about $20 billion in assets over the past two years, and plans to divest $10 billion more by next year.
As of 10:55 BST, Thursday, 25 May, Royal Dutch Shell Plc ‘A’ share price is 2,121.00p.

Are you looking for signals & alerts from pro-traders? Sign-up to Invezz Signals™ for FREE. Takes 2 mins.


Want easy-to-follow crypto, forex & stock trading signals? Make trading simple by copying our team of pro-traders. Consistent results. Sign-up today at Invezz Signals™.

Learn more
Energy & Power Stock Market