11th Mar 2016 16:08
LONDON (Alliance News) - Royal Dutch Shell PLC has appointed investment bank Lazard to advise it on its plan to offload USD30.00 billion worth of assets following the company's merger with BG Group, Reuters reported on Friday.
Shell had already revealed its plan to sell the assets between 2016 and 2018 in order to finance the BG deal and maintain its dividend following the steep drop in oil prices since the middle of 2014.
Reuters said a spokesperson from Shell had confirmed that Lazard had been brought in under a new mandate to advise its merger and acquisition team on the company's divestment strategy. The spokesperson also confirmed that Bank of America Merrill Lynch and Morgan Stanley had been picked to try to find buyers for the assets.
Chief Executive Officer Ben van Beurden has said Shell's disposals would initially focus on the refining, storage and retail divisions, known as downstream, whose value has held up during the current downturn, Reuters reported.
Oil and gas production assets, known as upstream, are more likely to be sold later once the oil price recovers, Shell has indicated.
Royal Dutch Shell 'A' shares were up 1.5% at 1,663.00 Thursday afternoon, whilst 'B' shares were up 1.7% at 1,669.50 pence.
http://www.reuters.com/article/us-shell-m-a-lazard-idUSKCN0WD169
By Joshua Warner; [email protected]; @JoshAlliance
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