Hawaiian Electric (NYSE:HE) rose 6.6% at least partly after a report that Central Pacific Financial Corp. is close to purchasing the utility’s bank.
Central Pacific is in talks with alternative asset managers to help acquire American Savings Bank from Hawaiian Electric (HE), according to a Bloomberg report on Monday, which cited people familiar with the matter. A deal could occur within weeks.
Central Pacific is talking about raising $1 billion to help fund the bank deal from investors including Warburg Pincus, Centerbridge Partners and Atlas Merchant Capital, according to the report.
A transaction could help Hawaiian Electric (HE) with its finances in the wake of the Maui wildfires last year as the utility has agreed to pay about $2 billion of as part of a $4 billion settlement with hundreds of plaintiffs
Bloomberg first reported in April that Hawaiian Electric (HE) was exploring options for its American Savings Bank , including a full or partial sale.
