THE TIMES (UK): Shell ends era of dual ownership: Wednesday June 29, 2005

By Peter Klinger

ROYAL DUTCH SHELL shareholders voted overwhelmingly yesterday in favour of plans to scrap the oil and gas giant’s dual-ownership structure, closing a century-old chapter in British corporate history.

The restructuring, supported by massive majorities at shareholder meetings in London and The Hague, will result in the formation of a unified Royal Dutch Shell, based in the Netherlands but with a main listing on the London Stock Exchange. The votes bring an end to London-based Shell Transport and Trading as a standalone company, established in the late 19th century.

Royal Dutch Shell hopes that the simplified structure — to replace the antiquated and investor-unfriendly set-up under which Royal Dutch owned 60 per cent of the global operating company and Shell Transport and Trading the remainder — will enable it to become more competitive.

Malcolm Brinded, Royal Dutch Shell’s exploration and production director, also flagged a new appetite for corporate deals. It is thought the revamped group could consider acquisitions worth as much as $9 billion (£4.9 billion).

The restructuring was greeted by angry protests from British small shareholders in Royal Dutch, who could now face capital gains tax bills totalling £77 million as a result of legal technicalities.

Advisory fees for the Shell overhaul are expected to reach $115 million. The group’s shares rose 17p to 545p. 

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