Company: AWK
Filing Date: 2025-12-17
Form Type: S-4
Source: 0001193125-25-321389
Chunk: 104

Company: American Water Works Company, Inc.
Filing Date: 2025-12-17
Form: S-4
Chunk 104
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exchange ratio and delivered to the Essential board an oral opinion, confirmed by delivery of a written opinion dated October 26, 2025, to the effect that, as of that date and based upon and subject to the assumptions made, procedures followed,
matters considered and qualifications and limitations set forth in its written opinion, the exchange ratio was fair from a financial point of view to the holders of Essential common stock. Representatives of Gibson Dunn led the Essential board in an
updated review of the merger agreement, noting the resolution of certain open maters since the Essential board’s prior meeting and highlighting the ancillary documentation. Following discussion, and the Essential board’s consideration of
the foregoing, including as to the matters described in “The Merger—Essential Board’s Recommendations and Its Reasons for the Merger” beginning on page 70, the Essential board authorized, adopted, and approved the
merger agreement and the transactions contemplated by the merger agreement, including the merger, and determined that the merger agreement and such contemplated transactions, including the merger, are advisable, fair to, and in the best interests of
Essential and its shareholders, and the Essential board unanimously recommends that Essential shareholders approve the merger proposal.

Following
approval of the merger agreement and the merger by the Essential board, during the afternoon on October 26, 2025, American Water and Essential and their respective representatives finalized the merger agreement and ancillary transaction
documents, and American Water, Merger Sub, and Essential executed the merger agreement.

On the morning of October 27, 2025, prior to the opening of
trading on the NYSE, American Water and Essential issued a joint press release announcing their entry into the merger agreement. Later that morning, American Water and Essential held a joint investor call to discuss the transaction.

66

American Water Board’s Recommendations and Its Reasons for the Merger At a meeting on October 24, 2025, by unanimous vote of all directors then present, the American Water board (i) authorized, adopted, and approved the merger agreement and the completion of the transactions contemplated thereby and determined that the merger agreement and such contemplated transactions, including the merger and the share issuance, are advisable, fair to, and in the best interests of American Water and its shareholders, (ii) directed that the share issuance proposal and the American Water adjournment proposal be submitted to the American Water shareholders for approval at the American Water special meeting, and (iii) recommended that the American Water shareholders vote “ FOR” the share issuance proposal