NextEra Energy Inc. To Buy Hawaiian Electric Industries Inc For $4.3 Billion

NextEra Energy, Inc. NEE agreed to pay $4.3 billion to acquire Hawaiian Electric Industries Inc. HE. Separately, Hawaiian Electric will spin off to shareholders its ASB Hawaii, parent company of American Savings Bank (ASB). Hawaiian Electric shareholders will get an estimated $3.5 billion, or $33.50 a share from the combined value of both deals, the companies said. In the extended session recently, Hawaiian Electric gained 11 percent to $31.29 a share; NextEra was unchanged at $104.39. NextEra Energy, parent of Florida Power & Light Co., will pay $4.3 billion for Hawaiian Electric, including the assumption of $1.7 billion in debt. The deal excludes Hawaiian's banking unit. NextEra said the deal will boost its earnings starting a full year following its closing. The transaction is expected to be completed within 12 months, subject to shareholder and regulatory approvals. Hawaiian Electric shareholders are to receive 0.2413 NextEra Energy shares per Hawaiian Electric Industries share and a one-time special cash dividend payment of $0.50 cents a share ASB's value is estimated by Hawaiian at $800 million, or $8 a share. The bank spin-off is expected to be tax free to shareholders. NextEra will assume $1.60 per Hawaiian share of tax liability for the spinoff, expected to be tax free to shareholders. American Savings Bank, with over $5 billion in assets, will become an independent publicly traded company following its spin off, expected immediately prior to NextEra's acquisition on Hawaiian Electric. Hawaiian said no involuntary workforce reductions are expected for at least two years after the transaction is completed.