HEI Announces Sale of American Savings Bank, Creating Independent Investor-Owned Bank
- Sale simplifies HEI’s strategy and regulatory position, allowing HEI to focus on core utility business and regaining financial strength
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Enables American Savings Bank to continue strong performance and best-in-class service for
Hawaii customers - Bank to maintain its current local leadership team, branches and brand
- HEI to use proceeds to reduce debt, increasing flexibility for funding wildfire settlement contributions and key utility initiatives, while reducing equity needs
The sale of the majority of HEI’s ownership in ASB follows the HEI Board of Directors’ (the “Board”) comprehensive review of strategic options regarding the bank, which was previously announced on August 9, 2024. In line with HEI’s stated focus on ensuring its enterprise is strong and financially healthy, the Board evaluated numerous potential paths forward for the bank and considered a range of factors including transaction certainty, proceeds, timeline to completion, regulatory considerations and potential stakeholder impacts.
The transaction closed December 31, 2024, with each Investor having a non-controlling interest in ASB. No investor owns more than
“This transaction marks an important step in HEI’s efforts to best position our companies to serve our customers and communities for the long term,” said Scott Seu, President and CEO of HEI. “As we navigate a dynamic time in the banking industry, we are confident selling
“This represents the best outcome for ASB, our customers, employees, and the communities we’ve served since 1925 as we focus on the next 100 years,” said Ann Teranishi, President and CEO of ASB. “We are excited about this next chapter for ASB.”
Additional Transaction Details
With the completion of the sale of most of its stake in ASB, HEI will operate as a simplified holding company with streamlined strategic focus on its utility, Hawaiian Electric. As an owner of
Advisors
Piper Sandler & Co. and Guggenheim Securities, LLC served as financial advisors to HEI and Sullivan & Cromwell LLP served as HEI’s legal advisor.
About HEI
The HEI family of companies provides the energy services that empower much of the economic and community activity of
Forward-Looking Statements
This release may contain “forward-looking statements,” which include statements that are predictive in nature, depend upon or refer to future events or conditions, and usually include words such as “will,” “expects,” “anticipates,” “intends,” “plans,” “believes,” “predicts,” “estimates” or similar expressions. In addition, any statements concerning future financial performance, ongoing business strategies or prospects or possible future actions are also forward-looking statements. Forward-looking statements are based on current expectations and projections about future events and are subject to risks, uncertainties and the accuracy of assumptions concerning HEI and its subsidiaries, the performance of the industries in which they do business and economic, political and market factors, among other things. These forward-looking statements are not guarantees of future performance.
Forward-looking statements in this release should be read in conjunction with the “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors” discussions (which are incorporated by reference herein) set forth in HEI’s Annual Report on Form 10-K for the year ended December 31, 2023 and HEI’s other SEC periodic reports and filings that discuss important factors that could cause HEI’s results to differ materially from those anticipated in such statements. These forward-looking statements speak only as of the date of the report, presentation or filing in which they are made. Except to the extent required by the federal securities laws, HEI, Hawaiian Electric, ASB and their subsidiaries undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
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Investor Contact
Mateo Garcia
Director, Investor Relations
ir@hei.com
(808) 543-7300
Media Contact
Julie Smolinski
VP, Strategy & Corporate Sustainability
media@hei.com
(808) 543-5874
Source: Hawaiian Electric Industries, Inc.