Company: AWK
Filing Date: 2025-12-29
Form Type: S-4/A
Source: 0001193125-25-332292
Chunk: 183

Company: American Water Works Company, Inc.
Filing Date: 2025-12-29
Form: S-4/A
Chunk 183
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 the closing under the merger agreement.

Merger Consideration Received by Essential Shareholders

At the effective time, each share of Essential common stock issued and outstanding immediately prior to the effective time, other than any shares of Essential
common stock owned by American Water or Merger Sub or by Essential as treasury stock (in each case, other than Essential RSAs), will be converted into the right to receive 0.305 shares of validly issued, fully paid, and nonassessable American Water
common stock. The aggregate number of such shares of American Water common stock to be issued in the merger is collectively referred to as the merger consideration. The exchange ratio is fixed and will not be adjusted to reflect stock price changes
of either American Water common stock or Essential common stock between the dates of the signing of the merger agreement and the completion of the merger. American Water shareholders will continue to own their existing shares of common stock of
American Water, the form of which will not be changed by the merger.

Adjustments

The exchange ratio will be equitably adjusted if, at any time between the signing of the merger agreement and the effective time, there is any change in the
number or class of the outstanding shares of capital stock of Essential or American Water by reason of any reclassification, recapitalization, stock split (including a reverse stock split) or combination, exchange or readjustment of shares, or any
stock dividend or stock distribution with a record date during such period; provided that such action is not taken in violation of the merger agreement.

Dividends and Distributions

No dividends or other
distributions with respect to shares of American Water common stock with a record date after the effective time will be paid to Essential shareholders until such shareholder surrenders its Essential shares for exchange. Likewise, no cash payment in
lieu of fractional shares will be paid to such Essential shareholder until it surrenders its Essential shares.

Fractional Shares

Fractional shares of American Water common stock will not be issued in connection with the merger. After the effective time, the exchange agent appointed by
American Water will sell on the NYSE the excess of (i) the aggregate number of whole shares of American Water common stock delivered to the exchange agent over (ii) the aggregate number of whole shares of American Water common stock to be
distributed to the former holders of Essential common stock. The exchange agent will pay to each former Essential shareholder a portion of the sale proceeds (reduced by any fees of the exchange agent attributed to such sale