NextEra Energy to purchase biggest Hawaii's biggest power supplying company

Jose Castro – Fourth Estate Cooperative Contributor

Honolulu, HI, United States (4E) – NextEra Energy Inc, the US mainland based power company, had announced it would be purchasing Hawaii’s biggest power supplier Hawaiian Electric Industries Inc. The price tag for the sale is USD2.63 billion in cash and stock.

The deal would also require Hawaiian Electric to spin off its subsidiary ASB Hawaii Inc., the parent company of American Savings Bank, to become a publicly listed firm

According to NextEra Energy Chairman and Chief Executive Officer Jim Robo , “We believe our strengths are additive to Hawaiian Electric’s creating an opportunity to enhance value for Hawaii’s strategically important energy industry.”

The announcement of the ‘merger’ said, “NextEra Energy shares Hawaiian Electric’s vision of increasing renewable energy, modernizing its grid, reducing Hawaii’s independence on imported oil, integrating more rooftop solar energy and importantly, lowering customer bills.”

Hawaiian Electric supplies the power requirements of about half a million consumers or nearly 95% of the population in Hawaii. The electric services are delivered through a network of electric utilities. The company also provides a menu of banking services through its American Savings Bank unit.

For the stock part of the transaction, the value of each Hawaiian Electric share is pegged at USD33.50 per share which includes a valuation of USD8 per share of American Savings Bank. There will also be the payment of a one time special dividend to be made as part of the deal. Furthermore, there is the assumption of Hawaiian’s USD1.7 billion in debt. This computed per share provides a 19% prem… MORE

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