Oracle Corp. CEO Larry Ellison has reached a deal to buy 98 per cent of the island of Lanai from its current owner, Hawaii governor Neil Abercrombie said Wednesday.
The land’s owner, Castle & Cooke Inc., filed a transfer application with the state’s public utilities commission, which regulates utilities on the island that serve its two resorts.
The sale price for the property, which comprises the vast majority of the island’s 141 square-miles, was not immediately clear. Lawyers for the seller redacted a copy of the sale agreement signed May 2, saying it includes confidential information that would competitively hurt Mr Ellison and the seller if disclosed. The Maui News previously reported the asking price was between $500 million and $600 million.
Self-made billionaire David Murdock, who owns Castle & Cooke, said he would keep his home on Lanai and the right to build a wind farm, a controversial project that would place windmills on as many as 20 square-miles of the island and deliver power to Oahu through an undersea cable.
Mr Murdock said in a statement that selling Lanai was not an impulsive decision, but he has been looking for a buyer who would have the right enthusiasm, commitment and respect for the island’s residents.
“I have learned in life that change is inevitable and can be quite positive when guided in the right direction,” Mr Murdock said.
Attempts to reach a representative for Mr Ellison through Oracle were not successful after business hours Wednesday.
Mr Ellison co-founded the Redwood City, California-based business software company in 1977. Forbes ranks him as the world’s sixth-richest person, with a net worth of $36 billion as of March.