Company: AWK
Filing Date: 2025-12-29
Form Type: S-4/A
Source: 0001193125-25-332292
Chunk: 41

Company: American Water Works Company, Inc.
Filing Date: 2025-12-29
Form: S-4/A
Chunk 41
---
 Essential board on October 26, 2025 to evaluate and approve the merger agreement and the transactions contemplated by the merger agreement, Moelis delivered an oral opinion, which was confirmed by delivery of a written opinion,
dated October 26, 2025, addressed to the Essential board to the effect that, as of the date of the opinion and based upon and subject to the assumptions made, procedures followed, matters considered and qualifications and limitations set forth in
the opinion, the exchange ratio was fair from a financial point of view to the holders of Essential common stock.

The full text of Moelis’ written opinion dated October 26, 2025, which sets forth the assumptions made, procedures followed, matters considered and qualifications and limitations on the review undertaken in connection with the opinion, is attached as Annex C to this joint proxy statement/prospectus and is incorporated herein by reference. Moelis’ opinion was provided for the use and benefit of the Essential board (solely in its capacity as such) in its evaluation of the merger. Moelis’ opinion is limited solely to the fairness from a financial point of view of the exchange ratio to the holders of Essential common stock, and does not address Essential’s underlying business decision to effect the merger or the relative merits of the merger as compared to any alternative business strategies or transactions that might be available to Essential. Moelis’ opinion does not constitute a recommendation as to how any holder of securities of Essential or American Water should vote or act with respect to the merger or any other matter.

For more information regarding the opinion of Essential’s financial advisor, see “The Merger—Opinion of Essential’s Financial Advisor” beginning on page 90. See also Annex C to this joint proxy statement/prospectus.

24

Governance of American Water After the Merger

Prior to the effective time, American Water will take all necessary action to increase the size of the American Water board such that at the effective time,
the American Water board will be comprised of 15 directors, which will include the 10 directors serving on the American Water board as of immediately prior to the effective time and five directors selected by Essential from directors on the
Essential board as of the date of the merger agreement, and following reasonable consultation with American Water and subject to compliance with (i) the independence requirements of the NYSE listing standards (other than Mr. Franklin) and
(ii) American Water’s charter and bylaws, corporate governance guidelines and typical procedures with respect to new directors.

The Board