Kerry Stokes's Seven Group Holdings has reportedly taken a stake in Woodside Petroleum worth nearly $100 million.
The Australian Financial Review is reporting that SGH picked up the shares when Woodside's largest shareholder Royal Dutch Shell sold 10 per cent of the oil and gas company in June.
SGH managing director Don Voelte is a former Woodside chief executive. The conglomerate in the past six months has moved into the oil and gas space through at least two investments.
According to the AFR, the Woodside shares sit on SGH's balance sheet in a $900million-plus listed investment portfolio which also includes shares in Telstra and the Agricultural Bank of China.
Woodside sought an explanation from SGH over the move. The newspaper said it's understood SGH told Woodside its investment was passive and should be thought of no differently to any other long-term, long-only investment manager.
SGH's shares were up 2 cents to $7.74 at 9.24am, while Woodside was up 38 cents to $43.08.