*** [7/18/16]
NextEra Energy Inc. has ended its plan to buy Hawaiian Electric Industries Inc. and will pay the state’s largest utility $95 million in “break-up” fees and other costs, the two companies announced early today.
The announcement came after the state Public Utilities Commission, in a 2-0 vote Friday, rejected the Juno, Fla.-based company’s $4.3 billion offer to takeover HEI. PUC approval was needed for the companies to close the deal. NextEra and HEI could have challenged the PUC decision, but instead will walk away from the deal.
“As a result of the PUC’s order, we have terminated our merger agreement,” Jim Robo, NextEra’s chairman and chief executive, said in a news release issued before U.S. stock markets opened this morning. “We wish Hawaiian Electric the best as it serves the current and future energy needs of Hawaii, including helping the state meet its goal of 100 percent renewable energy by 2045.”
The PUC, in its rejection, expressed doubts about NextEra’s commitment to the state’s lofty renewable-energy goal and said its decision does not prevent Hawaiian Electric from seeking another partner.
[12/3/14] Juno Beach, Fla.-based NextEra Energy has agreed to buy Hawaiian Electric Industries in a $4.3 billion deal.
NextEra Energy Inc. has ended its plan to buy Hawaiian Electric Industries Inc. and will pay the state’s largest utility $95 million in “break-up” fees and other costs, the two companies announced early today.
The announcement came after the state Public Utilities Commission, in a 2-0 vote Friday, rejected the Juno, Fla.-based company’s $4.3 billion offer to takeover HEI. PUC approval was needed for the companies to close the deal. NextEra and HEI could have challenged the PUC decision, but instead will walk away from the deal.
“As a result of the PUC’s order, we have terminated our merger agreement,” Jim Robo, NextEra’s chairman and chief executive, said in a news release issued before U.S. stock markets opened this morning. “We wish Hawaiian Electric the best as it serves the current and future energy needs of Hawaii, including helping the state meet its goal of 100 percent renewable energy by 2045.”
The PUC, in its rejection, expressed doubts about NextEra’s commitment to the state’s lofty renewable-energy goal and said its decision does not prevent Hawaiian Electric from seeking another partner.
[12/3/14] Juno Beach, Fla.-based NextEra Energy has agreed to buy Hawaiian Electric Industries in a $4.3 billion deal.
HEI will spin off American Savings Bank as part of the deal.
The
companies said Wednesday that Hawaiian Electric Co. will keep its name
and continue to be based in Honolulu. There will be "no involuntary
workforce reductions at Hawaiian Electric Co. for at least two years
after transaction closes," the companies said in a news release.
The value to HEI shareholders is estimated to be $33.50 a share. HEI shares closed trading Wednesday at $28.19.
"This is a
transformational opportunity to unlock the value of two strong, local
companies, American Savings Bank and Hawaiian Electric," said Connie
Lau, HEI's president and chief executive officer and chairman of the
boards of American Savings and Hawaiian Electric. "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."
Lau said
that with NextEra's additional financial resources Hawaiian Electric
will be able to meet its goal of reducing Hawaii's dependency on fossil
fuels sooner.
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