American Savings Bank Acquisition: $405 Million Investor Group Acquisition

American Savings Bank recently made headlines with a major move that caught the attention of the financial world. An investor group has acquired a significant portion of the bank’s common stock in a deal totaling $405 million. This acquisition involved a diverse array of independent investors purchasing 90.1% of American Savings Bank’s common stock from Hawaiian Electric Industries, Inc. (HEI).

It’s important to note that while this transaction represents a significant shift in ownership, HEI will still retain a 9.9% non-controlling interest in ASB’s common stock. Additionally, no individual investor will hold more than 9.9% of the stock, ensuring a balanced distribution of ownership.

American Savings Bank has a rich history of serving Hawaii’s businesses and communities, with roots dating back to 1925. The bank offers a wide range of financial products and services, including business and consumer banking, home loans, insurance, and investments. Known for its commitment to customer service, ASB provides easy online banking options and convenient branch locations throughout the state, even offering evening, weekend, and holiday hours.

On the other side of the transaction, Hawaiian Electric Company has been a key player in powering the islands’ development for over 125 years. Serving 95% of the state’s 1.4 million residents across Oahu, Maui, Hawaii Island, Lanai, and Molokai, Hawaiian Electric Company and its subsidiaries, Maui Electric Company, and Hawaii Electric Light Company, play a crucial role in providing essential energy services to the community.

The deal was shepherded by a seasoned team of experts from Davis Polk, including partners Margaret E. Tahyar, Marc O. Williams, and David L. Portilla. Other team members provided specialized advice on capital markets, executive compensation, and tax matters. The completion of this acquisition marks a significant moment for both American Savings Bank and Hawaiian Electric Company, signaling a new chapter for these respected institutions.