Maui Land & Pineapple Co. sells utilities after first-quarter loss
- May 4, 2021 2:08 pm GMTMay 4, 2021 7:50 pm GMT
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May 4—Maui Land & Pineapple Co. has completed a planned exit from the utility business.
The company announced Monday that it sold two subsidiaries operating water systems at Kapalua Resort.
Maui Land sold Kapalua Water Co. and Kapalua Waste Treatment Co. to a subsidiary of California Water Service Group on Saturday for $4.2 million in net proceeds.
The sale to Hawaii Water Service was announced in late 2019 and was subject to due diligence by the buyer and approval from the Hawaii Public Utilities Commission.
As part of the deal, the utilities bought by Hawaii Water received an expanded service area to cover future expansion at Kapalua Resort.
The sale expands business for Hawaii Water, which provides water and wastewater services in Kaanapali and Pukalani on Maui. The company also has ownership stakes in public utilities on Hawaii island.
For Maui Land the sale is part of a long-running effort to raise cash by selling assets that have included golf courses and undeveloped land after getting out of pineapple farming and resort development over a decade ago.
The developer of Kapalua Resort today still owns about 23, 000 acres on Maui and mainly leases former pineapple plantation lands to tenants.
During the three months ended March 31, Maui Land reported a $934, 000 loss on revenue of $2.06 million, compared with a $1.07 million loss on revenue of $2.04 million for the same period in 2020.
Shares of Maui Land stock closed Monday at $11.24 before the company announced its first-quarter earnings and water utility business sale. Shares over the past 52 weeks have closed between a low of $9.77 on July 14 and a high of $12.79 on Feb. 8.
FIRST-QUARTER LOSS $934, 000 YEAR-EARLIER LOSS $1.07 million
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