Hawaiian Electric sells 90% interest in American Savings Bank (updated)

Hawaiian Electric Industries

31/12/2024 19:26

(Adds details in from paragraph 3 to 5)
       Dec 31 (Reuters) - Hawaiian Electric Industries  HE.N 
said on Tuesday it had closed the deal to sell a 90.1% stake in
its unit American Savings Bank (ASB) through separate
agreements, as the parent of Hawaii Electric looks to raise
funds for the wildfire settlement.
    The deal values the bank at $450 million, with the investors
purchasing the 90.1% of ASB common stock for a cash
consideration of $405 million.
    The deal closed on Dec. 31, with each investor having a
non-controlling interest in ASB. 
        No investor owns more than 9.9% of the bank's common
stock, including Hawaiian Electric Industries, which has
retained a 9.9% stake
  
    Hawaiian Electric had raised going-concern doubts earlier in
August after disclosing that it did not have a financing plan in
place for its share of a more than $4 billion settlement to
compensate victims of last year's deadly Maui wildfires, which
killed over 100 people.

 (Reporting by Sourasis Bose and Arunima Kumar in Bengaluru;
Editing by Mohammed Safi Shamsi)
 ((Sourasis.Bose@thomsonreuters.com;))