Company: AWK
Filing Date: 2025-12-17
Form Type: S-4
Source: 0001193125-25-321389
Chunk: 102

Company: American Water Works Company, Inc.
Filing Date: 2025-12-17
Form: S-4
Chunk 102
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 relationship conflicts disclosure letter to Essential. The conflicts
disclosure letter included, among other things, information regarding the nature of Moelis’ previous engagement with Essential, and the amount of revenue Moelis received from Essential in connection with this engagement. The conflicts
disclosure letter confirmed that during the period covered by the letter Moelis had not been engaged by, and had not received fees from, American Water.

During the morning of October 24, 2025, the Essential board held a special meeting, at which certain members of Essential management were present.
Representatives of Moelis and Gibson Dunn also attended portions of the meeting. During the meeting, members of Essential management led the Essential board through a financial review of Essential’s standalone prospects and strategic plan,
including a review of the five-year plan. Essential management then discussed with the Essential board key findings from its due diligence review of American Water. Representatives of Moelis provided Moelis’ preliminary financial analysis for
a potential transaction with American Water, including a review of various methodologies used by Moelis in conducting its preliminary financial analysis. Representatives of Gibson Dunn reviewed with the Essential board their fiduciary duties and
certain legal considerations in connection with evaluating a potential merger transaction. They then discussed the key terms of the merger agreement, and certain information sharing guidelines while the transaction is pending regulatory approvals.
The Essential board then discussed the anticipated regulatory approval timeline and potential risks associated with such approvals and internal and external communications plans following the announcement of the potential transaction, as well as
Essential’s plans for communicating with its shareholders. After discussion, the Essential board adjourned the meeting until October 26, 2025.

During the afternoon of October 24, 2025, the American Water board held a special meeting, at which certain members of American Water management were
present. Representatives of BofA Securities and Skadden also attended portions of this meeting. During the meeting, the American Water board engaged in discussion with members of American Water management regarding the potential transaction,
including discussing recent developments since the September 30, 2025 American Water board meeting, due diligence updates, an overview of regulatory matters and strategy, and a potential communications roll-out should the American Water board
approve the potential transaction. During the meeting, representatives of BofA Securities discussed key market considerations and BofA Securities’ financial analysis for a potential transaction. Representatives of BofA Securities also
discussed the implied premium based on the agreed-upon exchange ratio of 0.305