Acquisition of Hawaiian Electric Industries, Inc. (HE) by NextEra Energy, Inc. (NEE) May Not Be in Shareholders’ Best Interests
Robbins LLP are investigating the proposed acquisition of Hawaiian Electric Industries, Inc. (NYSE: HE) by NextEra Energy, Inc. (NYSE: NEE). On December 3, 2014, the two companies announced the signing of a definitive merger agreement pursuant to which NextEra Energy will acquire Hawaiian Electric. Under the terms of the agreement, Hawaiian Electric shareholders will receive $33.50 for each share of Hawaiian Electric common stock.
Is the Proposed Acquisition Best for Hawaiian Electric and Its Shareholders?
Robbins LLP’s investigation focuses on whether the board of directors at Hawaiian Electric is undertaking a fair process to obtain maximum value and adequately compensate its shareholders.
As an initial matter, the $33.50 merger consideration represents a premium of only 18.8% based on Hawaiian Electric’s closing price on December 2, 2014. This premium is below the average one day premium of nearly 22.4% for comparable transactions within the past year.
On November 6, 2014, Hawaiian Electric released its earnings results for its third quarter 2014, reporting strong quarterly earnings. Net income for the third quarter of 2014 was $38.9 million compared to $37.8 million in the third quarter of 2013, an increase of approximately 3%. Revenue for the third quarter of 2014 was $867 million compared to $829 million in the third quarter of 2013, an increase of approximately 4.5%. Further, Hawaiian Electric beat consensus analyst estimates for adjusted EPS and adjusted net income in every quarter for the past year.
In light of these facts, Robbins LLP is examining Hawaiian Electric’s board of directors’ decision to sell the company now rather than allow shareholders to continue to participate in the company’s continued success and future growth prospects.
Hawaiian Electric shareholders have the option to file a class action lawsuit to ensure the board of directors obtains the best possible price for shareholders and the disclosure of material information.
Hawaiian Electric shareholders interested in information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, or you can complete the form below and we will contact you directly.