It was only in 1786 when the British East India Company finally ordered Light to obtain the island from Kedah. Light negotiated with the new Sultan of Kedah, Sultan Abdullah Mukarram Shah, regarding the cession of the island to the British East India Company in exchange for British military aid. After an agreement between Light and the Sultan was ratified, Light and his entourage sailed on to Penang Island, where they arrived on 17 July 1786. Light took formal possession of the island on 11 August "in the name of His Britannic Majesty, King George III and the Honourable East India Company". Penang Island was renamed the Prince of Wales Island after the heir to the British throne, while the new settlement of George Town was established in honour of King George III.