The transaction, which is valued at $4.3bn, involves the assumption of $1.7bn in HEI debt and excludes banking subsidiary of HEI.
HEI is also planning to spin off ASB Hawaii, the parent company of American Savings Bank (ASB), to HEI shareholders, in connection with the agreement. ASB Hawaii will be established as an independent publicly traded firm.
NextEra Energy chairman and chief executive officer Jim Robo said: "We are proud that Hawaiian Electric has agreed to join our company in large part because of our shared vision to bring cleaner, renewable energy to Hawaii, while at the same time helping to reduce energy costs for Hawaiian Electric’s customers.
"We look forward to welcoming and working with the Hawaiian Electric team, as well as engaging with and listening to key stakeholders, including Hawaiian Electric’s customers and communities, to achieve a more affordable clean energy future."
HEI president and chief executive officer and American Savings and Hawaiian Electric boards chairman Connie Lau said: "While our goals are among the most ambitious in the nation, including increasing renewables to 65 percent, tripling solar and lowering customer bills 20 percent by 2030, we are confident that by leveraging both NextEra Energy and Hawaiian Electric’s expertise and the additional financial resources that NextEra Energy brings, we can meet these targets even sooner."
Shareholders of HEI will receive NextEra Energy’s 0.2413 shares for every Hawaiian Electric Industries share and a one-time special cash dividend payment of $0.50 per share, as part of the deal.
Additionally, the transaction will be neutral to NextEra Energy shareholders’ earnings per share in first full year post-close and is accretive thereafter.
