Company: AWK
Filing Date: 2025-12-29
Form Type: S-4/A
Source: 0001193125-25-332292
Chunk: 60

Company: American Water Works Company, Inc.
Filing Date: 2025-12-29
Form: S-4/A
Chunk 60
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 merger will affect the value of American Water common stock that Essential shareholders will
receive upon the effectiveness of the merger.

The price of American Water common stock has fluctuated during the period between the date the merger
agreement was executed and the date of this joint proxy statement/prospectus, and may continue to change through the date of each of American Water’s and Essential’s shareholder meetings and the date the merger is completed. For example,
based on the range of closing prices of American Water common stock during the period from October 24, 2025, the last trading day before the public announcement of the merger agreement, through [ ], 202[ ], the last practicable
trading day before the date of this joint proxy statement/prospectus, the exchange ratio resulted in an implied value of the merger consideration ranging from a high of approximately $[ ] to a low of approximately $[ ] for each share of
Essential common stock. The actual market value of the American Water common stock received by Essential shareholders upon completion of the merger may result in an implied value of the merger consideration outside of this range.

These variations could result from a number of factors, including, without limitation: market assessment of the likelihood that the merger will be completed;
changes in the business, operations, or prospects of American Water or Essential prior to or following the completion of the merger; reactions from the financial markets or analysts; regulatory considerations; general business, market, industry, or
economic conditions; and other factors both within and beyond the control of American Water or Essential, including the risks, uncertainties, and other factors described in each of American Water’s and Essential’s filings with the SEC.
At the time of the Essential special meeting, Essential shareholders will not know with certainty the value of the shares of American Water common stock that they would receive upon completion of the merger. Neither American Water nor Essential may
terminate the merger agreement solely because of changes in the market price of either company’s common stock.

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The shares of American Water common stock to be received by Essential shareholders upon completion of the merger will have different rights from shares of Essential common stock.

Upon completion of the merger, Essential shareholders will no longer
be shareholders of Essential but will instead become shareholders of American Water, and their rights as American Water shareholders will be governed by the terms of the American Water certificate of incorporation and bylaws. The terms of the
American Water certificate of incorporation and bylaws are in some respects materially different than the terms of the Essential articles of incorporation and bylaws,