HONOLULU (AP) - Oracle Corp. CEO Larry Ellison has reached a deal to buy 98 percent of the island of Lanai from its current owner, Hawaii Gov. 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 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.
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,” Murdock said.
Attempts to reach a representative for Ellison through Oracle were not successful after business hours Wednesday.
Ellison co-founded the Redwood City, Calif.-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.
Abercrombie said Ellison has had a longstanding interest in the island.
“We look forward to welcoming Mr. Ellison in the near future,” Abercrombie said. “His passion for nature, particularly the ocean is well known specifically in the realm of America’s Cup sailing,” he said.
Maui County Mayor Alan Arakawa wished Murdock well and said he looks forward to meeting Ellison.
The deal involves 88,000 acres of land, plus two resorts, two golf courses, a stable and various residential and commercial buildings, lawyers for Murdock told the utilities commission in its application.
Ellison plans to pay cash, and the deal should result in new jobs, economic stimulus and a reinvigorated local tourism industry, the application said.
“The buyer anticipates making substantial investments in Lanai and is looking forward to partnering with the people of Lanai to chart the island’s future,” Castle & Cooke lawyers said in the application.
Lanai is Hawaii’s smallest publicly accessible inhabited island, with some 3,200 residents. It is known as the “pineapple island” even though Murdock closed its pineapple operations to make way for luxury resort and home development. The majority of the island was once owned by James Dole of Dole Food Company Inc., who bought it in 1922.