* Third Point called for Shell to be broken up
* Shell says its businesses work better together
* 'Royal Dutch' to be dropped from name
* Shell to shift its tax residence to Britain
(Adds details from announcement, background)
Nov 15 (Reuters) - Royal Dutch Shell will scrap its
dual share system in favour of a single class of shares to boost
shareholder payouts and simplify its structure, it said on
Monday, as the energy giant battles calls from an activist
investor to split up.
The company, which has set targets to gradually shift from
hydrocarbons, expects to drop "Royal Dutch" from its name and be
called Shell Plc. It also plans to move its tax residence to
Britain, its country of incorporation, from the Netherlands.
The moves come weeks after hedge fund Third Point disclosed
a large stake in Shell, calling on the oil and gas major to
split into multiple companies to increase its performance and
market value. Shell hit back, with top executives saying its
businesses operated better together than apart.
Shell, along with other European oil majors, has set targets
to move away from oil production while investing in non-fossil
energy sources like solar and wind power.
Shell's move to a single class of shares would create a
larger single pool of ordinary shares that can be bought back by
the company, it said. Shell shares will continue to be listed in
Amsterdam, London and New York.
"The simplification is designed to strengthen Shell's
competitiveness and accelerate both shareholder distributions
and the delivery of its strategy to become a net-zero emissions
business," Shell said.
"The current complex share structure is subject to
constraints and may not be sustainable in the long term," it
said.
The moves require at least 75% of votes by shareholders at a
general meeting to be held on Dec. 10, Shell said.
Last year, consumer products giant Unilever
abandoned its dual Anglo-Dutch structure in favour of a single
London-based entity.
(Reporting by Sachin Ravikumar in Bengaluru; Editing by Shounak
Dasgupta and Edmund Blair)