BNP Paribas plans to sell 20 million shares of First Hawaiian Bank at $27.90 apiece this week as it continues to reduce its holdings in the Honolulu bank.

The secondary offering in the $20.5 billion-asset First Hawaiian is expected to close on Wednesday. It is the latest step in BNP Paribas’ gradual spinoff of its interest in First Hawaiian, which held an initial public offering in 2016.

After the latest offering, BNP Paribas’ stake in First Hawaiian will be reduced from 48.8% to between 31% and 33.3%, depending on the results of the underwriters’ purchase option. The French company sold more than 15 million shares of the bank in May.

First Hawaiian said in a news release Monday that it will buy $50 million worth of the shares being sold this week.

Meanwhile, BNP Paribas will cut the number of directors that it appoints to First Hawaiian’s board from five to three. First Hawaiian will replace them with independent directors.

First Hawaiian shares fell 0.3% to $28.02 in Monday morning trading.

Goldman Sachs is financial adviser to First Hawaiian. Sullivan & Cromwell is legal counsel.

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