A US$2.68 billion share buy-back from Anglo-Dutch supermajor Shell of shares Woodside Petroleum has been knocked back after failing to secure enough of the shareholder vote.
Shareholders of the Australian independent voted to reject the buy-back at an extraordinary general meeting in Perth on Friday.
About 72% of shareholders voted for the proposition, while 28% voted against it.
The resolution needed a 75% acceptance rate to pass, meaning the buy-back has now fallen through.
Woodside chairman Michael Chaney said the board supported the buy-back as it is the only way Shell can sell off shares in an “orderly” fashion.
“In making our assessment of this transaction the board considered a range of capital management options including special dividends and selective and equal access buy-backs,” he said at the company’s meeting.
“The independent expert has concluded the transaction is fair and reasonable to all shareholders."