California Water Service Group · NYSE:CWT
California Water Service — Merger or Acquisition (April 2018)
9 slides from California Water Service's merger presentation, Apr 26, 2018
Slide 1: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking statements within the meaning established by the Private Securities Litigation Reform Act of 1995 (“Act”). The forward-looking statements are intended to qualify under provisions of the federal securities laws for “safe harbor” tr
Slide 2: Offer Summary
Offer Summary 3 Transaction Details California Water Service Group (“Cal Water”) proposes to acquire San Jose Water Group (“SJW”) for $68.25 per share in cash Assumes SJW’s pending transaction with Connecticut Water Service, Inc. (“Connecticut Water” or “CTWS”) is terminated No financing contingency
Slide 3: Cal Water Has Tried to Engage Privately with SJW for Many Years
Cal Water has had a long-standing interest in a combination with SJW and has reached out to the SJW Board numerous times over many years on a constructive, private basis Cal Water’s most recent efforts to initiate a dialogue began last September, when Cal Water made a formal private proposal to SJW
Slide 4: Clear Strategic Rationale
Creates a larger and stronger California-based water utility that would be better able to meet the needs of the three million people our companies serve in the Western U.S., including ~1.4 million people in the San Francisco Bay Area Combined economies of scale and purchasing power will enable Cal W
Slide 5: Substantial Financial Benefits to Cal Water Stockholders
Substantial Financial Benefits to Cal Water Stockholders Combination enhances Cal Water’s position as the nation’s third largest regulated water utility by creating a company with: Net income of $126 million Total assets of $4.2 billion Rate base of $1.9 billion Cal Water expects the transaction to
Slide 6: Tangible Benefits to Other Stakeholders
7 Tangible Benefits to Other Stakeholders Customer Benefits Meaningful cost savings to be shared with customers Economies of scale reduce cost per customer Recognized by J.D. Power, the American Water Works Association and the State of California for high-quality service Employee Commitment Addition
Slide 7: Next Steps
We believe SJW’s stockholders will view our proposal as more compelling than the Connecticut Water transaction, and we hope that SJW’s Board will elect to engage with us quickly We believe our proposal represents a “Superior Proposal” as defined in the current merger agreement with Connecticut Water
Slide 8: Next Steps
Next Steps * We believe SJW’s stockholders will view our proposal as more compelling than the Connecticut Water transaction, and we hope that SJW’s Board will elect to engage with us quickly — We believe our proposal represents a “Superior Proposal” as defined - in the current merger agreement with
Slide 9: Making Good Things Happen
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