In a major development in Hawaii’s financial and energy sectors, Hawaiian Electric Industries (HEI) has finalized the sale of a substantial majority stake in American Savings Bank (ASB).
This move, completed on December 31, 2024, marks a significant shift in the ownership structure of one of Hawaii’s largest financial institutions.
HEI sold 90.1% of ASB’s common stock to a consortium of nearly a dozen investors for approximately $405 million, valuing the bank at $450 million. Despite relinquishing majority ownership, HEI retains a 9.9% stake in the bank. The sale transitions ASB into an independent, locally owned entity headquartered in Honolulu. The existing management team will continue to lead the bank, ensuring continuity for its customers and stakeholders.
This decision comes in the wake of financial challenges faced by HEI, largely stemming from the 2023 Maui wildfires. The company recently agreed to a nearly $2 billion settlement related to its alleged role in the wildfires, which significantly impacted its financial position.
Proceeds from the ASB sale are expected to bolster HEI’s liquidity and help the company focus on its core energy operations, including clean energy initiatives critical to Hawaii’s transition to renewable energy.
As a newly independent entity, American Savings Bank is poised to strengthen its role in Hawaii’s economy.
“We are excited to embark on this new chapter as a locally owned institution,” said ASB CEO, [Name]. “Our commitment to serving the community remains steadfast, and this transition allows us to focus exclusively on delivering exceptional financial services to the people of Hawaii.”
The sale aligns with HEI’s broader strategy to navigate financial challenges while prioritizing Hawaii’s energy needs. For ASB, this move signifies an opportunity to grow independently and maintain its strong reputation in the local banking industry.
This development is expected to have far-reaching implications for Hawaii’s economy, affecting both the financial services and energy sectors. The coming months will reveal how this strategic decision impacts HEI’s financial recovery and ASB’s growth trajectory.
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