Company: AWK
Filing Date: 2025-12-17
Form Type: S-4
Source: 0001193125-25-321389
Chunk: 91

Company: American Water Works Company, Inc.
Filing Date: 2025-12-17
Form: S-4
Chunk 91
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, Essential’s historical financial performance and current five-year plan and potential strategic alternatives for Essential to enhance shareholder value. This discussion included consideration of a potential strategic
transaction with American Water, among other potential strategic actions, and related action items to advance the consideration of a potential transaction with American Water. After this discussion, the Essential board instructed Mr. Franklin to
continue discussions with American Water regarding a potential transaction.

On August 5, 2025, Mr. Griffith and Mr. Franklin met for dinner to
continue their prior discussions regarding a potential transaction. During their dinner, Mr. Griffith described the discussions that he had with the American Water board and explained that it had instructed Mr. Griffith to continue his discussions
with Mr. Franklin. Mr. Franklin also described his discussions with the Essential board and that it had instructed Mr. Franklin to continue his discussions with Mr. Griffith. Mr. Griffith and Mr. Franklin further discussed the mutual benefits
that a potential transaction would have to American Water and Essential and their respective shareholders. In addition, Mr. Griffith and Mr. Franklin discussed the potential post-closing governance structure and key leadership roles in the combined
company, including senior leadership roles for Daniel J. Schuller, Essential’s Executive Vice President and Chief Financial Officer, and Colleen M. Arnold, Essential’s President of its Aqua division. Mr. Griffith proposed that the board
of the combined company be composed of ten members from American Water and four members from Essential. Mr. Griffith and Mr. Franklin also discussed the transaction structure as an all-stock, fixed exchange ratio merger with a potential premium in
the range of 10% for Essential

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shareholders. In addition, Mr. Griffith and Mr. Franklin discussed regulatory matters, potential transaction timing, and considerations involving Essential’s natural gas operations.

Following Mr. Griffith’s dinner with Mr. Franklin, in early August 2025, American Water management contacted Skadden, American Water’s legal
counsel with respect to this potential transaction, and informed Skadden of Mr. Franklin’s and Mr. Kurz’s discussion with Mr. Franklin regarding a potential transaction. American Water management requested that Skadden begin drafting a
term sheet with respect to a potential transaction that reflected details that Mr. Griffith and Mr. Franklin had discussed in their prior conversations, including the anticipated timing of signing a definitive agreement, governance of the combined
company, structure of the potential transaction, and the fixed exchange ratio mechanism for the all-stock merger consideration.

On August 20, 2025, Mr.