Hawaii National Bancshares in Honolulu is planning to buy out the holdings of its minority shareholders.

The $634 million-asset bank is offering $14,146 per share, representing a total cost of roughly $580,000 for the buyout.

In a Sept. 8 letter to shareholders, Warren K.K. Luke, the company's chairman and chief executive, told the 41 minority shareholders that the offer would expire on Oct. 31, according to Pacific Business News.

Luke warned these shareholders that, while it is preferable and efficient for Hawaii National to reach an agreement with shareholders, the company "could elect to effect another reverse stock split with a compulsory buy out" of shareholders' shares, a strategy initially implemented in 1999 when the Luke family consolidated its stock ownership by going private.

Hawaii National in 1999 consolidated its stock ownership by converting every 200 outstanding shares of common stock into one share of new common stock in a reverse stock split. The transaction allowed the Luke family to own a majority stake of the company.

Hawaii National Bank has 14 branches.

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