Company: AWK
Filing Date: 2025-12-17
Form Type: S-4
Source: 0001193125-25-321389
Chunk: 3

Company: American Water Works Company, Inc.
Filing Date: 2025-12-17
Form: S-4
Chunk 3
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 as 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 merger agreement and the completion of the merger. American Water shareholders will continue to own their existing shares of common stock of American Water after completion of the merger, the form of which will not be changed by the merger. Upon completion of the merger, former Essential shareholders will own approximately [ ]% of the then outstanding American Water common stock and American Water shareholders will own the remaining approximately [ ]%, based on the number of shares of common stock and stock-based awards of American Water and Essential outstanding as of [ ], 202[ ], the last practicable trading day before the date of the accompanying joint proxy statement/prospectus. American Water will issue a fixed number of shares of American Water common stock in exchange for each share of Essential common stock. As a result, the implied value of the merger consideration to be received by Essential shareholders will fluctuate based on any changes in the market price of American Water common stock prior to the completion of the merger. Accordingly, such implied value of the per share merger consideration to be received by Essential shareholders upon completion of the merger could be greater than, less than, or the same as the implied value of the merger consideration on the date of the accompanying joint proxy statement/prospectus. We urge you to obtain current market quotations for the shares of American Water common stock and Essential common stock. American Water common stock is listed on the New York Stock Exchange, which is referred to as the NYSE, under the symbol “AWK,” and Essential common stock is listed on the NYSE under the symbol “WTRG.”

The merger is intended to qualify as a “reorganization” within the meaning of
Section 368(a) of the U.S. Internal Revenue Code of 1986, as amended. The obligation of the parties to consummate the merger is not conditioned upon the receipt of an opinion from counsel, nor have the parties applied for a ruling from the U.S.
Internal Revenue Service, that the merger would so qualify.

Each of American Water and Essential will hold a special meeting of its shareholders in
connection with the transactions contemplated by the merger agreement.

American Water’s special meeting of shareholders will be held virtually (and
not at a physical location) on [ ], 2026 at [ ]