Company: AWK
Filing Date: 2025-12-29
Form Type: S-4/A
Source: 0001193125-25-332292
Chunk: 88

Company: American Water Works Company, Inc.
Filing Date: 2025-12-29
Form: S-4/A
Chunk 88
---
 Essential management regularly evaluate the future of Essential and consider opportunities to enhance stakeholder objectives, including maintaining the status quo and strategic alternatives to Essential’s
standalone prospects and strategic plan, taking into account economic, competitive, regulatory, and other conditions, as well as historical and projected industry trends and developments. This ongoing review has, from time to time, included
discussions regarding potential mergers, acquisitions, sales of assets, going-private transactions, or the sale of Essential in a change of control transaction.

On June 4, 2025, John C. Griffith, the President and Chief Executive Officer of American Water, contacted Christopher H. Franklin, the Chairman,
President and Chief Executive Officer of Essential, following Mr. Griffith’s appointment by the American Water board as Chief Executive Officer of American Water, to establish an executive-level dialogue. Mr. Griffith and Mr. Franklin
then met for dinner on June 18, 2025 and discussed various business topics but did not discuss a potential business combination between American Water and Essential, which is referred to as the potential transaction. Mr. Griffith encouraged Mr.
Franklin to contact Karl F. Kurz, American Water’s Board Chair, when Mr. Franklin was next to be in the Houston, Texas area, to continue the dialogue between the companies regarding business and industry matters.

On July 15, 2025, Mr. Franklin and Mr. Kurz met for dinner to have a general business discussion. In the course of this conversation, the prospect of
re-engaging in a dialogue regarding a potential transaction was discussed. Mr. Kurz suggested that Mr. Franklin initiate discussions regarding the consideration of a potential transaction with Mr. Griffith.

On July 23, 2025, Mr. Griffith and Mr. Franklin had a call during which they discussed the mutual benefits that a potential transaction would have to
American Water and Essential and their respective shareholders and other

57

stakeholders, and the business rationale and anticipated timing for a potential transaction. Mr. Griffith and Mr. Franklin discussed that a premium would be paid to Essential shareholders in
connection with the potential transaction. In addition, Mr. Griffith and Mr. Franklin discussed concepts of a framework for a potential transaction, including that Mr. Griffith and the executive leadership team of American Water would remain in
their current roles in the combined company, and the combined company’s board of directors would be made up of members from the American Water board and the Essential board in approximate proportion to pro forma shareholder ownership. Mr.
Griffith and Mr