Bankoh selling more
S. Pacific branches

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Rick Daysog
rdaysog@starbulletin.com

Bank of Hawaii is selling its interest in its operations in French Polynesia and New Caledonia to one of France's largest banks.

The bank said today it has entered exclusive negotiations with Caisse Nationale de Caisses d'Epargne to sell its majority stake in Banque de Tahiti and Bank of Hawaii-Nouvelle Caledonie. Terms were not disclosed, but Bank of Hawaii said it expects to complete the sale by the end of the year.

The deal is part of a previously announced plan to sell off Bank of Hawaii's Asia-Pacific operations and focus its core Hawaii market.

Banque de Tahiti currently has 17 branches and 265 employees. The New Caledonia bank has eight branches and about 180 workers.

Bank of Hawaii, the main subsidiary of Pacific Century Financial Corp., first entered the French Polynesia market in 1969 when it formed the Bank of Tahiti with several partners and later acquired a majority interest in the Tahiti bank. The Bank of Hawaii formed Banque de Nouvelle-Caledonie in 1974 with Credit Lyonnais.

The buyer, Group Caisse d'Epargne, operates the third largest banking network in France with 4,800 branches and 26 million customers.