Hawaiian Electric Industries has nixed a plan to spin off its
The spinoff of the $6.1 billion-asset bank was contingent on the sale of Hawaiian Electric to NextEra Energy in Juno Beach, Fla., but the Hawaii Public Utilities Commission vetoed the merger agreement, the companies said in separate press releases Monday. The commission late last week decided that the deal was not in the best interests of the public, according to
"With the termination of that transaction, the spin-off of [American Savings] is not contemplated at this time," Hawaiian Electric said in its press release.
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American Savings Bank in Honolulu announced Wednesday that its parent company, Hawaiian Electric Industries, is planning to spin off the bank.
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First Hawaiian Bank in Honolulu will be spun off rather than sold.
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Bank of Hawaii in Honolulu has hired Sheh Bertram as chief information officer.
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Many of the bank's policies bubbled up through meetings of the Employee Excellence Council, a group of roughly 50 volunteers from tellers to senior vice presidents that offers input on benefits, working conditions and anything else that comes to mind.
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Moreover, Connie Lau, the chairman and chief executive of Hawaiian Electric and American Savings, was quoted in the release as saying, "ASB will continue to serve and invest in Hawaii, helping residents and businesses grow and prosper."
The utility, which has owned American Savings since 1998, announced its plan to spin off the bank as a publicly traded company in December 2014. Under the merger agreement, NextEra Energy is required to pay Hawaiian Electric a $90 million breakup fee and as much as $5 million for reimbursement of transaction-related expenses.
The Hawaiian banking industry has been in transition recently.
