Shell dual share listing ends amid overhaul of legal, tax setup

Shares will start dealings on Euronext Amsterdam and the London Stock Exchange on Monday.
Image: Bloomberg

Shell’s two-tier share structure came to an end at the weekend, bringing a close to its historic setup that the company increasingly regarded as a financial burden.
Late last year, Shell’s investors and board agreed to overhaul the company’s legal and tax structure, losing “Royal Dutch” from its name, relocating its tax residence to the UK and moving a dozen top executives to London. The plan included consolidating all the shares in one country, making it easier to buy and sell assets as well as return cash to stockholders.

Shell’s shares will start dealings on Euronext Amsterdam and the London Stock Exchange on Monday, in each case as a single line of ordinary stock, the company said in a statement.

The dual line was a legacy of the 2005 unification of Koninklijke Nederlandsche Petroleum Maatschappij and Shell Transport & Trading Co. The company’s A shares were subject to Dutch dividend withholding tax, while the B shares were not. That meant Shell only carried out buybacks on B shares, limiting how many repurchases it could make.

© 2022 Bloomberg

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