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Shell to sell C$4.1 billion stake in Canadian Natural -sources

Shell to sell C$4.1 billion stake in Canadian Natural -sources

By John Tilak and David French: 23 May 2017

TORONTO/NEW YORK, May 23 (Reuters) – Royal Dutch Shell Plc has decided to offload a roughly C$4.1 billion ($3 billion) stake in Canadian Natural Resources Ltd (CNRL) that it acquired as part of a deal to retreat from Canada’s oil sands earlier this year, people familiar with the situation told Reuters.

Shell has been interviewing investment banks to hire a financial adviser for the share sale, four people said in the past week, declining to be named as the discussions are confidential.

The deal could be one of the biggest-ever equity sales in Canada. The largest Canadian equity deal so far was TransCanada Corp’s C$4.4 billion offering last year.

Shell declined to comment, and Canadian Natural did not immediately offer a comment.

In March, Shell agreed to sell most of its Canadian oil sands assets for $8.5 billion, in a major strategic pullback from the capital-intensive business. As part of the transaction, Shell acquired about 98 million Canadian Natural shares, or about 8.8 percent of CNRL’s outstanding shares, which are currently valued at about C$4.1 billion.

Shell plans to use the proceeds to help pay down the debt it assumed with the acquisition of British rival BG Group, the people said.

($1 = 1.3506 Canadian dollars) (Reporting by John Tilak in Toronto and David French in New York; Additional reporting by Ron Bousso in London; Editing by Lisa Shumaker)

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