8-KOther EventsExhibits & Filings

American Water Works Company, Inc. 8-K Report, Corporate Update (Jan 3, 2022)

Filed January 3, 2022For Securities:AWK

Summary

American Water Works Company, Inc. (AWK) has officially completed the sale of its New York regulated utility operations to Liberty Utilities (Eastern Water Holdings) Corp., an affiliate of Algonquin Power & Utilities Corp. The transaction, which closed on January 1, 2022, resulted in AWK receiving $608 million in cash. This divestiture aligns with the company's strategic objectives and follows the necessary approval from the New York State Department of Public Service on December 16, 2021. For investors, this sale represents a significant cash infusion that can be redeployed for future investments, debt reduction, or shareholder returns. The company has confirmed the completion via a press release issued on January 3, 2022. While the terms of the sale are detailed in the referenced Stock Purchase Agreement, investors should note the standard cautionary language regarding contractual representations and warranties not necessarily reflecting the actual state of affairs.

Key Highlights

  • 1Completion of sale of American Water Works' New York subsidiary finalized on January 1, 2022.
  • 2AWK received $608 million in cash from Liberty Utilities (Eastern Water Holdings) Corp.
  • 3The sale was approved by the New York State Department of Public Service on December 16, 2021.
  • 4This transaction marks the divestiture of AWK's regulated utility operations in New York.
  • 5The company issued a press release on January 3, 2022, to announce the closing of the transaction.
  • 6The cash proceeds can be utilized for strategic investments, debt management, or shareholder value enhancement.

Frequently Asked Questions

The primary event reported is the completion of the sale of American Water Works Company, Inc.'s New York regulated utility operations to Liberty Utilities (Eastern Water Holdings) Corp. for $608 million in cash.

American Water Works Company, Inc. received $608 million in cash from the sale of its New York subsidiary.

The sale of the New York subsidiary officially closed on January 1, 2022.

The significant cash inflow of $608 million provides AWK with flexibility to pursue strategic investments, strengthen its balance sheet by reducing debt, or enhance shareholder returns.