Shell Agrees To Sell Nigerian Onshore Subsidiary, SPDC For US$1.3B Plus Up To US$1.1B In Additional Payments, Mostly Due At Completion
Portfolio Pulse from Charles Gross
Shell has agreed to sell its Nigerian onshore subsidiary, SPDC, to a consortium called Renaissance for $1.3 billion, with up to $1.1 billion in additional payments. The deal is subject to approval by the Nigerian government and other conditions. The additional payments are mainly related to prior receivables and cash balances, with most due at the transaction's completion.
January 16, 2024 | 10:12 am
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Shell is divesting its Nigerian onshore subsidiary SPDC for $1.3 billion plus potential additional payments of up to $1.1 billion, subject to government approvals and other conditions.
The sale of SPDC could be seen as a positive move for Shell, as it streamlines its operations and potentially reduces exposure to geopolitical risks in Nigeria. The deal's completion could lead to a positive short-term impact on Shell's stock price, as it represents a significant cash inflow and a strategic divestment. However, the impact may be moderated by the fact that the deal is subject to government approval and other conditions.
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