Hawaiian Electric Industries Announces Sale of American Savings Bank, Inc.

Hawaiian Electric Industries, Inc. (NYSE: HE) recently disclosed a significant development involving its wholly owned subsidiary, American Savings Bank, F.S.B. (ASB). In a Form 8-K filing submitted to the Securities and Exchange Commission on December 30, 2024, HEI detailed the sale of 90.1% of the common stock of ASB to independent investors through separate investment agreements.

The transaction, valued at $450 million, saw investors acquire the majority stake in ASB for a total cash consideration of $405 million. The sale aims to simplify HEI’s strategy, allowing the company to concentrate on its core utility operations, regain financial strength, and improve its financial resilience.

The move also positions ASB as an independent, investor-owned bank based in Honolulu while retaining its local leadership team, branches, and brand. Each investor, including ASB’s officers and directors, holds a non-controlling interest in ASB following the transaction, ensuring that no single investor owns more than 9.9% of the bank’s common stock. HEI retains a 9.9% stake in ASB.

Scott Seu, President and CEO of HEI, remarked, “This transaction marks an important step in HEI’s efforts to best position our companies to serve our customers and communities for the long term. As we navigate a dynamic time in the banking industry, we are confident selling 90% of ASB to independent investors is the best approach for HEI, ASB and our communities.”

The proceeds from the sale will be used by HEI to reduce debt, offering increased flexibility in funding wildfire settlement contributions and utility initiatives. The company anticipates that the sale will enable it to focus on Hawaiian Electric and enhance its strategic position for future growth and resilience.

HEI also clarified that it expects to operate as a streamlined holding company with a concentrated focus on Hawaiian Electric following the sale. The completion of the transaction is anticipated to relieve HEI from certain regulatory requirements as a savings and loan holding company.

HEI disclosed that the strategic review for its subsidiary, Pacific Current, remains ongoing and the company has been evaluating various options for the unit.

Financial advisory services for the transaction were provided by Piper Sandler & Co. and Guggenheim Securities, LLC, while Sullivan & Cromwell LLP acted as HEI’s legal advisor.

For more information and additional details regarding the transaction, interested parties are encouraged to refer to HEI’s Form 8-K filing dated December 30, 2024, with the Securities and Exchange Commission. The company has also issued a press release regarding the sale of American Savings Bank on December 31, 2024, which is attached to the filing.

No further details or comments have been provided by Hawaiian Electric Industries at this time.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Hawaiian Electric Industries’s 8K filing here.

About Hawaiian Electric Industries

Hawaiian Electric Industries, Inc, together with its subsidiaries, engages in the electric utility businesses in the United States. It operates in three segments: Electric Utility, Bank, and Other. The Electric Utility segment engages in the production, purchase, transmission, distribution, and sale of electricity in the islands of Oahu, Hawaii, Maui, Lanai, and Molokai.