The sale, which is subject to federal and state regulatory approvals, is expected to close in the second or third quarter of 2006, officials said.

Founded in 1904, The Gas Company provides gas energy and related services to 67,000 business and residential customers throughout Hawai'i.

Jim Yates, The Gas Company's president, said Macquarie has agreed to retain the company's 300 employees, adopt the collective bargaining agreement covering union employees and maintain existing wage and benefit packages for all other employees.

Macquarie, trading as "MIC" on the New York Stock Exchange, said on its Web site that it was formed to own, to operate and to invest in infrastructure businesses that provide basic, everyday services in the United States and other developed countries.

The Gas Company displays all the key investment criteria sought by Macquarie, said Peter Stokes, MIC's chief executive officer.

"The regulated utility market is an attractive infrastructure investment sector which fits extremely well with MIC's investment mandate," Stokes said. "Utilities such as The Gas Company operate with long-life, high-value physical assets and enjoy consistent demand over time."