Hawaiian Electric Industries sold a 90.1% stake in American Savings Bank in Honolulu to a group of investors.
The stake in the $9.3 billion-asset bank was sold for $405 million in cash. Hawaiian Electric said in a press release that it retained a 9.9% stake. The bank will continue to be led by its management team.
“The sale allows HEI to enhance our focus on the utility as we work to help our state recover from the 2023 Maui wildfires and strengthen the financial and strategic position of our company,” Scott Seu, Hawaiian Electric’s president and CEO, said in the release.
Hawaiian Electric said it plans to use the proceeds to reduce its debt. The company will no longer be subject to regulation as a savings and loan holding company.
Hawaiian Electric, in a regulatory filing, shared investor agreements with Castle Creek Capital Partners, Celtic Bank, and several of the bank’s executives.
Piper Sandler, Guggenheim Securities and Sullivan & Cromwell advised Hawaiian Electric.