Company: AWK
Filing Date: 2025-12-17
Form Type: S-4
Source: 0001193125-25-321389
Chunk: 109

Company: American Water Works Company, Inc.
Filing Date: 2025-12-17
Form: S-4
Chunk 109
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 October 26, 2025, unanimously (i) determined that it is advisable, fair to, and in the best interests of Essential and its shareholders to enter into the merger agreement and to consummate the transactions contemplated by the merger agreement, including the merger, (ii) approved, adopted, and declared advisable the merger agreement, and (iii) directed that the merger agreement proposal, the merger-related compensation proposal, and the Essential adjournment proposal be submitted to the Essential shareholders for approval at the Essential special meeting. The Essential board unanimously recommends that Essential shareholders vote “ FOR” the merger agreement proposal, “ FOR” the merger-related compensation proposal, and “ FOR” the Essential adjournment proposal. In reaching its decision, the Essential board consulted with Essential management and independent legal and financial advisors and considered a variety of factors with respect to the merger and the other transactions contemplated by the merger agreement, including the following (which are presented below in no particular order and are not exhaustive):

| • |     | the combination of Essential and American Water would create a leading regulated U.S. water and wastewater 
 utility company serving more than 4.7 million water and wastewater customer connections across 17 states;  |

| • |     | the merger is expected to be accretive to American Water’s earnings per share in the first year following 
 the closing, and the combined company expects to maintain American Water’s 7-9%                           |

70

| earnings per share and dividend growth targets post-closing, as well as potential cost synergies, driven by, among other things, a more efficient regulated platform with improved ability to serve 
 customers and pass along economies of scale and operational efficiency benefits to customers;                                                                                                       |

| • |     | Essential and American Water had a combined rate base of $33.5 billion as of December 31, 2024, and the combined 
 company would be expected to continue to maintain its overall rate base growth on a combined basis;              |

| • |     | the merger consideration to be received by Essential shareholders values Essential common stock at $43.18 per                                                                                                                                       
 share based on American Water’s closing price on October 24, 2025 (the last trading day prior to public announcement of the execution of the merger agreement), which represents a highly attractive valuation relative to the standalone           
 prospects of Essential and the recent and historic trading prices, trading multiples, and analyst price targets for Essential common stock, including the fact that the implied per share merger consideration represented, as of October