Company: AWK
Filing Date: 2025-12-29
Form Type: S-4/A
Source: 0001193125-25-332292
Chunk: 97

Company: American Water Works Company, Inc.
Filing Date: 2025-12-29
Form: S-4/A
Chunk 97
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 certain key
market and financial analyses and discussed various considerations for a potential transaction, including impacts to American Water’s future growth opportunities and prospects and the public market response and reaction to a potential
transaction. In addition, representatives of Skadden discussed certain legal and regulatory matters relating to the proposed transaction process, including the status of key terms in the draft merger agreement, 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, evaluation, and diligence regarding a potential
transaction, including to negotiate the terms of the draft merger agreement.

In early October 2025, American Water management began negotiating the terms
of an engagement letter with BofA Securities in connection with BofA Securities’ services with respect to the potential transaction.

On
October 6, 2025, as part of the diligence process for the potential transaction, members of Essential management shared Essential’s updated five-year plan, which was previously approved by the Essential board, with members of American
Water management.

On October 7, 2025, Gibson Dunn (on behalf of Essential) sent a revised draft of the merger agreement to Skadden. Among other
changes, Gibson Dunn’s revised draft of the merger agreement included changes to covenants applicable to regulatory matters, employee matters, and the operation of the business between signing and closing, changes to the definition of
burdensome effect, and a decrease in the termination fee amounts from 3.5% to 2.5% of the relevant party’s equity value. Gibson Dunn also proposed that the parties discuss a regulatory reverse termination fee.

On October 9, 2025, members of American Water management, including Ms. Mitchell, and members of Essential management, including Mr. Luning, held a call
to discuss certain legal matters, including legal due diligence, outstanding high-priority diligence matters, and regulatory matters.

Also on
October 9, 2025, Mr. Griffith and Mr. Franklin held a call to discuss the potential transaction, including required regulatory approvals and the exchange ratio for the potential transaction, and Essential’s gas operations.

On October 10, 2025, representatives of Skadden and representatives of Gibson Dunn had a call to discuss key proposed changes in Gibson Dunn’s
October 7, 2025 draft of the merger agreement. During the call, Skadden and Gibson Dunn discussed various proposed changes in the draft merger agreement,