Company: AWK
Filing Date: 2025-12-29
Form Type: S-4/A
Source: 0001193125-25-332292
Chunk: 93

Company: American Water Works Company, Inc.
Filing Date: 2025-12-29
Form: S-4/A
Chunk 93
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. In
addition, representatives of Skadden discussed certain legal and regulatory matters relating to a potential transaction and reminded the American Water board of its fiduciary and other duties in connection with a potential transaction.

At the conclusion of the meeting, the American Water board directed American Water management to continue discussions regarding a potential transaction,
including to coordinate with Essential management regarding the diligence process.

On August 29, 2025, David M. Bowler, Executive Vice President and
Chief Financial Officer of American Water, and Mr. Schuller held an introductory call to discuss the potential transaction, including the due diligence process.

On September 2, 2025, representatives of Moelis and members of Essential management held a call to discuss Essential’s five-year planning process,
Essential’s business and financial performance, and the due diligence process for a potential transaction.

Also on September 2, 2025, members
of American Water management, members of Essential management and representatives of their respective advisors, including Skadden, BofA Securities, Gibson Dunn, and Moelis, held a call to begin the diligence process in connection with a potential
transaction. During the call, the parties discussed the timeline to begin and complete diligence, key diligence focus areas, and which parties would be responsible for certain diligence workstreams. Thereafter, members of American Water management,
members of Essential management and representatives of their respective advisors, including Skadden, BofA Securities, Gibson Dunn, and Moelis, generally held calls on a weekly basis to discuss the diligence process and key outstanding diligence
items, as well as other key workstreams and allocations of responsibility with respect to such workstreams.

At the direction of the Essential board, in
early September 2025, Essential management began negotiating the terms of an engagement letter with Moelis in connection with Moelis’ services with respect to the potential transaction.

60

On September 4, 2025, Skadden (on behalf of American Water) sent a draft term sheet to Gibson Dunn,
which addressed the key terms covered in the email sent by Mr. Franklin to Mr. Griffith on August 24, 2025, including American Water common stock as merger consideration, contemplating an exchange ratio that would reflect a 10% premium to the
trading price of shares of Essential common stock, the timeline to sign a definitive agreement, the role of the Executive Vice Chair of the board of directors of the combined company, the composition of the board of directors of the combined