In a filing to the London Stock Exchange, Shell said it was to sell 71.6 million shares in Woodside at A$31.10 per share (£18.20) which would value the equity stake at £1.303bn, or US$1.7bn.
The sale represents 64 per cent of Shell's stake in Woodside and 8.5 per cent of Woodside's issued capital, Shell said.More news: World Cup without Italy would be a 'disaster', says Low
Completion is expected to take place on 14 November, with settlement expected on 16 November. The announcement came after Perth-based company's stock closed at $32.24.
Investors in Woodside Petroleum will have to contend with the confirmation last night that Shell is about to sell most of its holding, with the rest not to far behind.
It will retain a 4.8% interest after the latest deal completes on later and has agreed not to sell any of its remaining shares for a minimum of 90 days. But in 2010, it sold a 10% stake, and a further 9.5% in June 2014.More news: After Online Vote, Australian Ferry Will Be Named 'Ferry McFerryface'
Shell said today that proceeds from its sale of Woodside shares will be used to reduce the group's net debt.
Australia blocked a takeover bid by Shell for Woodside in 2001 on national interest grounds.
"Woodside will maintain a close working relationship with Shell - as a joint venture partner and customer of Shell technology - and we recognise that Shell will always be part of our history", Woodside Chief Executive Peter Coleman said in a statement.More news: Apple approves iPhone X 'Notch Remover' app
- Abe says agreed with Putin to implement United Nations sanctions on North Korea
- U.S. top court to hear case over 'crisis pregnancy centers'
- Wolfenstein II Sets Road Map for Downloadable Content
- Sony will sell a PlayStation 4 for $200 on Black Friday
- Missouri is taking page from Europe and investigating Google
- History-making hijabi Olympian Ibtihaj Muhammad is getting her own Barbie doll
- Bill Gates Building a 25000-Acre Smart City in Arizona
- Detroit Cops Fight Each Other over Drug Bust Gone Wrong
- Rand Paul returns to Washington following assault
- Not Delhi, Varanasi tops list of India's most polluted cities