THE HAGUE, the Netherlands –Royal Dutch Shell has named Bermuda-headquartered financial and asset management firm Lazard to advise on a multi-billion dollar asset sale following its acquisition of BG Group, Reuters has reported, citing several banking and industry sources.
To finance the deal and maintain its dividend despite the down market, Shell announced at its November 2015 Management Day that it would divest $30 billion between 2016 and 2018. The producer posted $20 billion of asset sales throughout 2014-2015.
Bank of America Merrill Lynch and Morgan Stanley were also named by Reuters as assisting on the asset sale, noting that other institutions might yet be added.
The news organization received confirmation from Shell that Lazard was brought in under a new mandate to advise its merger and acquisition team on its divestment strategy. It will also help in identifying potential assets to sell and prospective buyers.
“We don’t have a broker relationship with any one bank. We choose banks on project-by-project basis, on the basis of price and suitability. We expect several banks to bid for and get transaction mandates for our $30 billion asset-sale program,” a Shell spokesperson told Reuters.