Company: AWK
Filing Date: 2025-12-17
Form Type: S-4
Source: 0001193125-25-321389
Chunk: 103

Company: American Water Works Company, Inc.
Filing Date: 2025-12-17
Form: S-4
Chunk 103
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 shares of

65

American Water common stock for each share of Essential common stock. In addition, representatives of Skadden discussed certain legal matters relating to the potential transaction, including the
key open matters in the draft merger agreement, and reminded the American Water board of its fiduciary and other duties in connection with a potential transaction. Following BofA Securities’ representatives’ departure from the meeting
and a discussion with representatives of Skadden, the American Water board then determined that none of the matters set forth in the BofA Securities’ updated conflicts disclosure letter would limit BofA Securities’ ability to fulfill its
responsibilities as American Water’s financial advisor in connection with the potential transaction. After returning to the meeting, representatives of BofA Securities delivered to the American Water board the oral opinion of BofA Securities,
which was confirmed by delivery of a written opinion dated October 24, 2025, to the effect that, as of the date of such opinion and based on and subject to the factors and assumptions set forth in the written opinion, the exchange ratio
provided for in the merger was fair, from a financial point of view, to American Water.

Following discussion and the American Water board’s
consideration of the foregoing, including as to the matters described in “The Merger—American Water Board’s Recommendations and Its Reasons for the Merger” beginning on page 67, by unanimous vote of
all directors then present, the American Water board authorized, adopted, and approved the merger agreement and the transactions contemplated by the merger agreement, including the merger and the share issuance, and determined that the merger
agreement and such contemplated transactions, including the merger and the share issuance, are advisable, fair to, and in the best interests of American Water and its shareholders, and the American Water board unanimously recommended that American
Water shareholders approve the share issuance proposal.

On October 25, 2025, Gibson Dunn sent a revised draft of the merger agreement to Skadden.

On October 25, 2025, Moelis and Essential executed an engagement letter in connection with Moelis’ services with respect to the potential
transaction and delivery of a fairness opinion.

On October 26, 2025, the Essential board reconvened its prior meeting virtually, at which certain members
of Essential management were present. Representatives of Moelis and Gibson Dunn also attended portions of the meeting. At the request of the Essential board, representatives of Moelis reviewed with the Essential board its financial analysis of the