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Hawaiian Electric offers 90% interest in American Savings Bank

Hawaiian Electric Industries (HEI). stated on Tuesday it had actually closed the deal to sell a 90.1%. stake in its unit American Cost savings Bank (ASB), assisting the. company raise funds for the fatal 2023 Maui wildfire. settlement.

The offer values the bank at $450 million, with the investors. purchasing 90.1% of ASB common stock for a cash consideration of. $ 405 million.

In November, HEI

lifted

a warning about its ability to stay in business, stating. that a recent capital raise assisted alleviate the concerns.

The energy had raised going issue doubts after. revealing that it did not have a funding strategy in place for. the $1.99 billion Maui wildfire settlement it reached in August.

The sale develops an independent, local bank. headquartered in Honolulu, led by ASB's present management team. under its existing brand, the company said in a declaration.

The sale permits HEI to improve our focus on the utility. as we work to help our state recover from the 2023 Maui. wildfires and reinforce the financial and strategic position of. our business, CEO Scott Seu said.

The deal closed on Dec. 31, with each investor having actually a. non-controlling interest in ASB. No financier owns more than 9.9%. of the bank's typical stock, consisting of HEI, which has actually kept a. 9.9% stake.

With the conclusion of the sale of the majority of its stake in ASB,. HEI will run as a streamlined holding company with a. structured strategic concentrate on its utility, Hawaiian Electric.

HEI has been undertaking a comprehensive evaluation of. strategic options for Pacific Current, its completely owned. subsidiary, which stays ongoing.

(source: Reuters)