HONOLULU, June 10, 2015 /PRNewswire/ -- Hawaiian
Electric Industries, Inc. (NYSE: HE) (HEI) today announced that HEI
shareholders have approved the merger agreement with NextEra
Energy, Inc. (NYSE: NEE) announced Dec. 3,
2014.
"We're extremely pleased that our shareholders, many of whom are
Hawaiian Electric, Maui Electric and Hawaii Electric Light
customers, have shown their strong support for this historic
partnership by approving the proposed merger," said Jeff Watanabe, HEI's chairman of the board. "The
approval marks another significant milestone in our efforts to
accelerate Hawaii's clean energy
transformation by bringing the expertise and resources of NextEra
Energy to our state to achieve even higher levels of renewables and
lower energy costs for our customers."
Of the shares voted, approximately 90 percent were in favor of
the merger. Achieving this level of shareholder support is a
significant accomplishment because, while publicly held companies
commonly may proceed with a merger with the affirmative vote of a
majority of their outstanding shares, HEI is required under
Hawaii law to obtain supermajority
approval from 75 percent of its outstanding shares. Hawaii is the only state with such a high
approval requirement for a merger.
The merger will bring together two industry leaders in clean and
renewable energy. Hawaiian Electric has put Hawaii on the leading edge of clean energy
nationally, successfully integrating rooftop solar with 12 percent
of its residential customers and helping meet 21 percent of
customer electricity needs from renewable energy resources. NextEra
Energy has developed, built and operates one of the nation's most
modern grid networks and is the world's largest producer of
renewable energy from the wind and sun. NextEra Energy supports and
will help accelerate Hawaiian Electric's plans to lower electric
bills, triple distributed solar – including rooftop solar – and
achieve a 65 percent renewable portfolio standard (RPS) by 2030.
This week Gov. David Ige signed a
bill into law that set a goal of 70 percent RPS by 2040 and 100
percent RPS by 2045 for the state—goals which Hawaiian Electric and
NextEra Energy have each stated they fully support.
"We're confident that this merger will help us more quickly
achieve the affordable clean energy future we all want for
Hawaii," said Connie Lau, HEI's president and chief executive
officer and chairman of the boards of Hawaiian Electric and
American Savings Bank. "We're proud to support a measure recently
passed by the legislature and signed by our governor making
Hawaii the first state in the
nation to adopt a 100 percent renewable energy portfolio standard.
Partnering with NextEra Energy will strengthen and accelerate our
ability to reach our state's ambitious goals."
The merger with NextEra Energy is expected to provide Hawaiian
Electric with the added resources and access to expertise to
accelerate Hawaii's clean energy
transformation, while delivering substantial customer benefits,
including lower costs. Subject to approval by the Hawaii Public
Utilities Commission (PUC), the companies have committed to
approximately $60 million in customer
savings over four years and to not request an increase in the
general base electricity rate for at least four years
post-transaction close. Following completion of the transaction,
Hawaiian Electric will continue to operate under its current name,
be locally managed, and remain headquartered in Honolulu. HEI is one of Hawaii's most charitable companies and NextEra
Energy will continue HEI's overall current level of corporate
giving in Hawaii.
While the Federal Energy Regulatory Commission (FERC) has
approved the proposed merger, the transaction remains subject to
other regulatory approvals including approval by the PUC, other
customary closing conditions and the spinoff of American Savings
Bank, a subsidiary of HEI and one of Hawaii's largest full-service financial
institutions. Following the spinoff, American Savings Bank will
remain based in Hawaii as an
independent public company, and continue to provide a full range of
financial products and services, including business and consumer
banking, insurance and investments, corporate banking and
commercial real estate lending.
"The spinoff of American Savings Bank as a condition to
completing the merger enables shareholders to continue to own
American Savings Bank and to participate in the bank's upside
potential as an independent public company," said Connie Lau. "Our ability to spin off American
Savings Bank reflects the strength of the bank's business, its
strong market position and its talented team of employees."
Hawaiian Electric Industries, Inc.
HEI supplies power to approximately 450,000 customers, or 95
percent, of Hawaii's population
through its electric utilities, Hawaiian Electric Company, Inc.,
Hawaii Electric Light Company, Inc. and Maui Electric Company,
Limited and provides a wide array of banking and other financial
services to consumers and businesses through American Savings Bank,
one of Hawaii's largest financial
institutions.
NextEra Energy, Inc.
NextEra Energy, Inc. (NYSE: NEE) is a leading clean energy
company with consolidated revenues of approximately $17.0 billion, approximately 44,900 megawatts of
generating capacity, which includes megawatts associated with
noncontrolling interests related to NextEra Energy Partners, LP
(NYSE: NEP), and approximately 13,800 employees in 27 states and
Canada as of year-end 2014.
Headquartered in Juno Beach, Fla.,
NextEra Energy's principal subsidiaries are Florida Power & Light Company, which serves
approximately 4.8 million customer accounts in Florida and is one of the largest
rate-regulated electric utilities in the
United States, and NextEra Energy Resources, LLC, which,
together with its affiliated entities, is the world's largest
generator of renewable energy from the wind and sun. NextEra Energy
has been recognized often by third parties for its efforts in
sustainability, corporate responsibility, ethics and compliance,
and diversity, and has been ranked in the top 10 worldwide for
innovativeness and community responsibility as part of Fortune's
2015 list of "World's Most Admired Companies." For more information
about NextEra Energy companies, visit these websites:
www.NextEraEnergy.com, www.FPL.com,
www.NextEraEnergyResources.com.
Forward Looking Statements
This document contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements are typically identified by words or
phrases such as "may," "will," "anticipate," "estimate," "expect,"
"project," "intend," "plan," "believe," "predict," and "target" and
other words and terms of similar meaning. Forward-looking
statements involve estimates, expectations, projections, goals,
forecasts, assumptions, risks and uncertainties. HEI cautions
readers that any forward-looking statement is not a guarantee of
future performance and that actual results could differ materially
from those contained in any forward-looking statement. Such
forward-looking statements include, but are not limited to,
statements about the anticipated benefits of the proposed merger
involving NEE and HEI, including future financial or operating
results of NEE or HEI, NEE's or HEI's plans, objectives,
expectations or intentions, the expected timing of completion of
the transaction, the value, as of the completion of the merger or
spin-off of HEI's bank subsidiary or as of any other date in the
future, of any consideration to be received in the merger or the
spin-off in the form of stock or any other security, and other
statements that are not historical facts. Important factors that
could cause actual results to differ materially from those
indicated by any such forward-looking statements include risks and
uncertainties relating to: the risk that NEE or HEI may be unable
to obtain governmental and regulatory approvals required for the
merger or the spin-off, or required governmental and regulatory
approvals may delay the merger or the spin-off or result in the
imposition of conditions that could cause the parties to abandon
the transaction; the risk that a condition to closing of the merger
or the completion of the spin-off may not be satisfied; the timing
to consummate the proposed merger and the expected timing of the
completion of the spin-off; the risk that the businesses will not
be integrated successfully; the risk that the cost savings and any
other synergies from the transaction, including the value of a
potential tax basis step up, may not be fully realized or may take
longer to realize than expected; disruption from the transaction
making it more difficult to maintain relationships with customers,
employees or suppliers; the diversion of management time and
attention on merger and spin-off-related issues; general worldwide
economic conditions and related uncertainties; the effect and
timing of changes in laws or in governmental regulations (including
environmental); fluctuations in trading prices of securities and in
the financial results of NEE, HEI or any of their subsidiaries; the
timing and extent of changes in interest rates, commodity prices
and demand and market prices for electricity; and other factors
discussed or referred to in the "Risk Factors" section of HEI's or
NEE's most recent Annual Reports on Form 10-K filed with the
Securities and Exchange Commission (the "SEC"). These risks, as
well as other risks associated with the merger, are more fully
discussed in the definitive proxy statement/prospectus that is
included in the Registration Statement on Form S-4 that NEE has
filed with the SEC in connection with the merger. Additional risks
and uncertainties are identified and discussed in HEI's reports
filed with the SEC and available at the SEC's website at
www.sec.gov. Each forward-looking statement speaks only as of
the date of the particular statement and HEI undertakes no
obligation to update or revise its forward-looking statements,
whether as a result of new information, future events or
otherwise.
Contacts:
|
Clifford H.
Chen
|
Telephone: (808)
543-7300
|
|
Manager, Investor
Relations & Strategic Planning
|
E-mail:
ir@hei.com
|
|
|
|
|
A.J.
Halagao
|
Telephone: (808)
543-5889
|
|
Manager, Corporate
& Community Advancement
|
E-mail:
info@hei.com
|
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SOURCE Hawaiian Electric Industries, Inc.