California Water Withdraws $70.00 Per Share Proposal to Acquire SJW Group After Rejection by SJW
Terminates Tender Offer to Acquire Outstanding SJW Stock
SAN JOSE, Calif.--(BUSINESS WIRE)-- California Water Service Group (“California Water”) (NYSE: CWT) today announced that it has withdrawn its revised proposal to acquire SJW Group (“SJW”) (NYSE: SJW) for $70.00 per share in cash after it was rejected by the SJW Board. California Water will also terminate its tender offer to acquire all outstanding shares of SJW common stock.
“California Water is financially disciplined, and after repeated attempts to engage with the SJW Board of Directors, we believe it is in our stockholders’ best interests to withdraw our proposal and focus on other opportunities,” said Martin A. Kropelnicki, President and CEO of California Water.
Mr. Kropelnicki continued, “It is unfortunate that the SJW Board concluded that our offer was not likely to lead to a superior transaction without availing themselves the opportunity to enter into a single discussion with us. Although we are disappointed by their unwillingness to engage, we are confident we have an excellent growth strategy in place that will continue to deliver long-term stockholder value. As we build on our long track record of success, we will remain committed to enhancing the quality of life for our customers, communities, and employees.”
About California Water Service Group
California Water Service Group is the parent company of California Water Service, Washington Water Service, New Mexico Water Service, Hawaii Water Service, CWS Utility Services, and HWS Utility Services. Together, these companies provide regulated and non-regulated water service to approximately 2 million people in more than 100 California, Washington, New Mexico, and Hawaii communities. California Water Service Group’s common stock trades on the New York Stock Exchange under the symbol “CWT.” Additional information is available online at www.calwatergroup.com.
Forward Looking Statements
This news release 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” treatment established by the Act. Forward-looking statements are based on currently available information, expectations, estimates, assumptions and projections, and management’s judgment about the Company, the water utility industry and general economic conditions. Such words as would, expects, intends, plans, believes, estimates, assumes, anticipates, projects, predicts, forecasts or variations of such words or similar expressions are intended to identify forward-looking statements. The forward-looking statements are not guarantees of future performance. They are subject to uncertainty and changes in circumstances. Actual results may vary materially from what is contained in a forward-looking statement. Factors that may cause a result different than expected or anticipated include, but are not limited to: governmental and regulatory commissions’ decisions; consequences of eminent domain actions relating to our water systems; changes in regulatory commissions’ policies and procedures; the timeliness of regulatory commissions’ actions concerning rate relief; inability to renew leases to operate city water systems on beneficial terms; changes in California State Water Resources Control Board water quality standards; changes in environmental compliance and water quality requirements; electric power interruptions; changes in customer water use patterns and the effects of conservation; the impact of weather and climate on water availability, water sales and operating results; the unknown impact of contagious diseases on the Company’s operations; civil disturbances or terrorist threats or acts, or apprehension about the possible future occurrences of acts of this type; labor relations matters as we negotiate with the unions; restrictive covenants in or changes to the credit ratings on our current or future debt that could increase our financing costs or affect our ability to borrow, make payments on debt or pay dividends; and, other risks and unforeseen events. When considering forward-looking statements, you should keep in mind the cautionary statements included in this paragraph, as well as the annual 10-K, Quarterly 10-Q, and other reports filed from time-to-time with the Securities and Exchange Commission (SEC). The Company assumes no obligation to provide public updates of forward-looking statements.
Released August 17, 2018