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Hawaiian Electric Industries, Inc., on Tuesday announced the sale of a 90% stake in its American Savings Bank subsidiary to independent investors, through a series of separate agreements, for $405 million in cash. The transaction values the bank at $450 million.

The sale of the vast majority of HEI’s ownership in American Savings Bank follows more than a year of speculation about whether the holding company would sell the bank to raise money to deal with costs associated with the 2023 Maui wildfires.

The announcement comes just weeks before the Hawaii Legislature kicks off its 2025 session in January and bodes well for the company’s legislative agenda, said Sen. Jarrett Keohokalole, who held hearings on HECO-related bills last session as chair of the Senate Commerce and Consumer Protection Committee. 

The company’s top priority is a measure to help it raise money by borrowing against a new fee levied on customers. Keohokalole said the deal shows the utility is doing everything it can to help itself before going to customers. He said he plans to introduce a bill on HECO’s behalf this session.

“In general, one of the major questions being asked last year when HECO requested securitization authority was, ‘Has the company done everything it needs to do to shore up its position itself?’” Keohokalole said. “So I think this is a significant change.”

Under the deal, each investor will have a non-controlling interest in the bank, the company said in a news release. No investor owns more than 9.9% of the bank’s common stock, including HEI, which has retained a 9.9% stake. The Investors also include all of ASB’s executive team and independent directors. 

“The sale allows HEI to enhance our focus on the utility as we work to help our state recover from the 2023 Maui wildfires and strengthen the financial and strategic position of our company,” said Scott Seu, HEI’s president and chief executive. “We intend to use the proceeds to reduce holding company debt, increasing flexibility for how HEI funds the HEI and Hawaiian Electric wildfire settlement contributions and key utility initiatives.”