NEW YORK (TheStreet) --Shares of Hawaiian Electric Industries (HE) are climbing higher by 16.32% to $32.79 mid-morning trading on Thursday, after the company announced on Wednesday that it will merge with NextEra Energy (NEE) in a transaction valued at approximately $4.3 billion.
The deal brings together two "industry leaders" in clean and renewable energy, Hawaiian Electric said in a statement.
As part of the agreement Hawaiian Electric shareholders will receive 0.2413 NextEra Energy shares per Hawaiian Electric share, and a one-time special cash dividend payment of 50 cents per share, the company said.
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The transaction is expected to be completed within approximately 12 months, and as part of the deal Hawaiian Electric will spinoff ASB Hawaii, which is the parent company of American Savings Bank, to shareholders establishing an independent publicly traded company.
NextEra is taking over the biggest electric company in Hawaii in order to provide ground for its push into green energy, Bloomberg reports.
'It makes a lot of sense for NextEra with all the renewables that Hawaiian Electric was going to do. NextEra is the premier renewable energy builder and developer and really good at transmission," an analyst at Gabelli & Co. told Bloomberg.
Separately, TheStreet Ratings team rates HAWAIIAN ELECTRIC INDS as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation: