Company: AWK
Filing Date: 2025-12-17
Form Type: S-4
Source: 0001193125-25-321389
Chunk: 412

Company: American Water Works Company, Inc.
Filing Date: 2025-12-17
Form: S-4
Chunk 412
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 been provided with any independent evaluation or appraisal of the assets or liabilities (contingent or otherwise) of Essential, American Water or any other entity, nor have we made any physical inspection of the properties or assets of Essential, American Water or any other entity. We have not evaluated the solvency or fair value of Essential, American Water or any other entity under any state, federal or other laws relating to bankruptcy, insolvency or similar matters. We have assumed, at the direction of American Water, that the Transaction will be consummated in accordance with the terms set forth in the Agreement, without waiver, modification or amendment of any material term, condition or agreement contemplated therein or thereby and that, in the course of obtaining the necessary governmental, regulatory and other approvals, consents, releases and waivers for the Transaction, no delay, limitation, restriction or condition, including any divestiture requirements or amendments or modifications, will be imposed that would have an adverse effect on Essential, American Water, any other entity, or the Transaction (including the contemplated benefits thereof). We also have assumed, at the direction of American Water, that that the final executed Agreement will not differ in any material respect from the Draft Agreement reviewed by us. We express no view or opinion as to any terms or other aspects or implications of the Transaction (other than the Exchange Ratio to the extent expressly specified herein), including, without limitation, the form or structure of the Transaction, or any terms, aspects or implications of any other agreement, arrangement or understanding entered into in connection with or related to the Transaction or otherwise. Our opinion is limited to the fairness, The Board of Directors American Water Works Company, Inc. Page 2

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from a financial point of view, to American Water of the Exchange Ratio provided for in the Transaction and no
opinion or view is expressed with respect to any consideration received in connection with the Transaction by the holders of any class of securities, creditors or other constituencies of any party. In addition, no opinion or view is expressed with
respect to the fairness (financial or otherwise) of the amount, nature or any other aspect of any compensation to any of the officers, directors or employees of any party to the Transaction, or class of such persons, relative to the Exchange Ratio.
Furthermore, no opinion or view is expressed as to the relative merits of the Transaction in comparison to other strategies or transactions that might be available to American Water or in which American Water might engage or as to the underlying
business decision of American Water to