Connecticut Water Service — Merger or Acquisition (July 2018)
7 slides from Connecticut Water Service's merger presentation, Jul 13, 2018
Slide 1: Filed by Connecticut Water Service, Inc. Pursuant to Rule 425
Filed by: Connecticut Water Service, Inc. Pursuant to Rule 425 under the Securities Act of 1933 and deemed filed pursuant to Rule 14a-12 under the Securities Exchange Act of 1934 Subject Company: Connecticut Water Service, Inc. (Commission File No.: 0-8084) This filing relates to the proposed transa
Slide 2: Investor Materials July 13, 2018
Investor Materials July 13, 2018
Slide 3: Forward-Looking Statements
Forward can negative that (2) governmental (7) proposed the companies’ statement/prospectus transaction, 10-Q condition, those and the risks transaction; be speak the for more identified risk conditions that of Looking the transaction transaction; only including that fully those existing as period t
Slide 4: Implied Value Per Share: SJW/CTWS Pro Forma
3 $70.51 1Represents forward error annual $2.88, Implied Per $69.24 CTWS indicating $3.06and growth 23 Value P/E $69.24 Share of theper rate) 25.0x, 2018 present SJW $68.00 $2.62 CTWS | Note: as 2019E plus; $2.73 value $62.00 the Share Based (b) discount -2022E $2.98 ofthe $64.00 EversourceProposal
Slide 5: Eversource's Non-Binding Proposal and Premiums Analysis
4 Eversource’sNon-Binding $54.38/share and Transactions Utility CTWS’ All Cash unaffected, All-Stock andAverage $52.57/share, Merger pre-announcement % Premiums Acquisition of respectively, Equals $64.00 Proposal Transactions18% close as$69.50 ofprice Represents March 4of 3 2$52.57/share 14, 15%2018
Slide 6: Comparable Transactions P/E
Comparable transactions P/E of Multiple $64.00/share (31.5xRange LTM announced Utility 2Based 23.2x P/E)Transaction multiple 24.1x within on CTWS 30.4x is the Multiples not last counter 38.3x “extremely three 5Offer proposal yearsacompelling”1 Basis Based of $69.50/share for on aquality, Higher CTWS
Slide 7: Additional Information and Where to Find It
aAdditional with SEC. OTHER THEIR obtain documents available does jurisdiction prospectus respective the proxy for such sources Registration joint the proposed the not participants INVESTORS statement free proxy fiscal ENTIRETY indicated SEC RELEVANT constitute free directors meeting Information cop
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