Hawaiian Electric Industries HEI has completed the sale of American Savings Bank ASB to independent investors for $405 million, which will help HEI reduce its debt and provide more funding for the ongoing wildfire settlement contributions.
This transaction, which closed on December 31, allows ASB to remain an independent local bank headquartered in Honolulu, retaining its management team and brand. ASB is Hawaii’s third-largest bank with assets worth $9.3 billion.
HEI sold 90.1% of ASB’s stock, with no investor holding more than 9.9% of the shares, and HEI retains 9.9% ownership. The decision to sell came after HEI’s Board of Directors reviewed various strategic options to strengthen its financial position and focus on the utility, especially in light of the 2023 Maui wildfires.
Both HEI’s CEO, Scott Seu, and ASB’s CEO, Ann Teranishi, expressed that the sale ensures a healthy future for both entities and supports the recovery efforts for the state while setting the stage for ASB’s next century of service to its customers and the community.
Additionally, HEI does not expect to be regulated as a savings and loan holding company due to its minority ownership stake.