8-KOther Events

American Water Works Company, Inc. 8-K Report, Corporate Update (Dec 16, 2021)

Filed December 16, 2021For Securities:AWK

Summary

American Water Works Company, Inc. (AWK) announced a significant step towards the completion of its previously disclosed Stock Purchase Agreement with Liberty Utilities (Eastern Water Holdings) Corp. On December 16, 2021, the New York Department of Public Service (NYSDPS) issued an order approving the terms of a Joint Proposal related to the acquisition. This approval, along with the authorization of the stock purchase and transfer of AWK's New York subsidiary, satisfies the final major condition required to close the transaction. With regulatory hurdles cleared, American Water Works now anticipates completing the sale of its New York subsidiary to Liberty on or about January 1, 2022. This divestiture marks a strategic move, allowing the company to focus on its core operations and growth initiatives in other markets. Investors should monitor the financial impact of this transaction and AWK's future capital allocation strategies.

Key Highlights

  • 1NYSDPS issued an order approving the Joint Proposal for the stock purchase of AWK's New York subsidiary.
  • 2The NYSDPS order authorizes the stock purchase and the transfer of capital stock of AWK's New York subsidiary to Liberty.
  • 3This approval satisfies the final significant remaining condition for the completion of the stock purchase.
  • 4American Water Works intends to complete the transaction on or about January 1, 2022.
  • 5The transaction involves the sale of AWK's New York subsidiary to Liberty Utilities (Eastern Water Holdings) Corp., a subsidiary of Algonquin Power & Utilities Corp.

Frequently Asked Questions

The main event is the New York Department of Public Service (NYSDPS) issuing an order that approves the terms of a Joint Proposal, which allows for the completion of the sale of American Water Works Company's New York subsidiary to Liberty Utilities (Eastern Water Holdings) Corp.

American Water Works Company intends to complete the transaction on or about January 1, 2022.

Yes, the NYSDPS approval of the Joint Proposal and the authorization of the stock purchase and transfer satisfy the final significant remaining condition for the completion of the stock purchase. This indicates the transaction is moving forward to completion.

This divestiture allows American Water Works Company to fulfill the terms of the previously disclosed Stock Purchase Agreement and likely enables the company to focus resources and capital on other growth opportunities and core operations in its remaining service territories.