Shell to remove double-share structure as it fights investor investor By Reuters

(Reuters) – Royal Dutch Shell (LON 🙂 will reject its double-share system to increase shareholder payments in favor of a single share class and simplify its structure, the energy giant said Monday as an activist investor calls for it. distribute.

The company, which has set targets to gradually switch from hydrocarbons, hopes to remove “Royal Dutch” from its name and call it Shell Plc. It also intends to move its tax headquarters to the United Kingdom, the country of its origin, from the Netherlands.

A few weeks after the move by Third Point (NYSE 🙂 hedge fund announced its high stake in Shell, it has asked major oil and gas companies to distribute it to several companies to increase its performance and market value. Shell responded that senior executives said their business worked better than together.

Shell, along with other major European oil companies, has set targets to move away from oil production by investing in non-fossil energy sources such as solar and wind energy.

Moving to a single share class of Shell would create a larger set of common shares that the company can buy, he said. Shell shares will continue to be traded in Amsterdam, London and New York.

“The simplification is designed to strengthen Shell’s competitiveness and accelerate its strategy of transforming shareholder divisions and zero-emission net business,” Shell said.

“The current complex shareholding structure has limitations and may not be sustainable in the long run,” he said.

The move requires at least 75 percent of shareholder votes at a Dec. 10 general meeting, Shell said.

Last year, the consumer product giant Unilever (NYSE 🙂 abandoned its double Anglo-Dutch structure in favor of a single London-based entity.