NextEra to snap up Hawaiian Electric in USD-4.3bn deal

Dec 4, 2014 - US power producer NextEra Energy Inc (NYSE:NEE) said yesterday it will acquire Hawaiian Electric Industries (NYSE:HE) in a deal valued at USD 4.3 billion (EUR 3.5bn), seeking to expand its renewable energy business.

Hawaiian Electric is the regulated electric utility for 95% of Hawaii’s population. Its goal is to source 65% of its total power from renewables by 2030. At present, some 11% of its customers have installed rooftop solar arrays at their homes.

As part of the transaction, which does not involve Hawaiian Electric’s banking unit, the buyer will assume about USD 1.7 billion of Hawaiian Electric’s debt. The target firm’s shareholders will get about USD 33.50 per share, consisting of 0.2413 shares of NextEra Energy common stock. a one-time special cash dividend of USD 0.50 per share and shares of Hawaiian Electric’s unit ASB Hawaii. The subsidiary, which is the parent company for American Savings Bank, will be spun off into a publicly traded company.

“In NextEra Energy, Hawaiian Electric is gaining a trusted partner that can help the company accelerate its plans to achieve the clean energy future we all want for Hawaii,” said Hawaiian Electric president and CEO Connie Lau.

The acquisition is pending shareholder and regulatory clearance. It is expected to be neutral to NextEra’s earnings per share in the first full year after closing and will start to add to its earnings thereafter. Following the deal, Hawaiian Electric will continue to operate under its current name, NextEra said.

(USD 1.0 = EUR 0.813)

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