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November 19, 2018

Connecticut Water shareholders approve merger with SJW Group

Courtesy / Connecticut Water Co.
Courtesy / Connecticut Water Co.
Connecticut Water Service Inc. (NASDAQ: CTWS), parent company of Maine Water Co., announced that on Nov. 16 its shareholders approved the merger with California-based SJW Group, which is now an all-cash deal instead of a stock-for-stock transaction.

Connecticut Water Service Inc. (NASDAQ: CTWS) announced Friday that its shareholders overwhelmingly voted to approve the company's proposed merger agreement with SJW Group (NYSE: SJW).

A publicly traded holding company headquartered in Clinton, Conn. CTWS is the parent company of Connecticut Water Co., Maine Water Co., Avon Water Co. and The Heritage Village Water Co. Together, these subsidiaries provide water service to more than 450,000 people in Connecticut and Maine, and wastewater service to more than 10,000 people in Connecticut.

The $1.1 billion all-cash buyout offer with SJW Group, the parent company of San Jose Water Co., one of the West Coast's largest water companies, remains on track to close in the first quarter of 2019, subject to customary closing conditions and regulatory approvals.

Approximately 92.5% of the shares voted at Friday's special meeting were voted in favor of the SJW Group merger agreement, representing approximately 68.7% of Connecticut Water's outstanding common stock entitled to vote at the special meeting.

Connecticut Water will file the final vote results, as certified by an independent inspector, with the U.S. Securities and Exchange Commission.

As previously announced, the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act was terminated early on April 27, 2018. Applications to obtain regulatory approvals of the merger were filed with the Connecticut Public Utilities Regulatory Authority and the Maine Public Utilities Commission on July 18 and May 4 respectively.

Upon completion of the proposed transaction, Connecticut Water's shareholders will receive $70 in cash for each share of Connecticut Water common stock owned.

Carol P. Wallace, chair of the Connecticut Water Service board of directors, said that after the transaction closes, Connecticut Water will continue to be led locally with a New England regional headquarters in Connecticut.

The 700-employee combined company would serve over 1.5 million people and become the nation's third largest investor-owned water and wastewater utility.

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