Wired News – California Water Initiates Unsolicited Cash Tender Offer to Acquire SJW Group

LONDON, UK / ACCESSWIRE / June 11, 2018 / If you want access to our free research report on California Water Service Group (NYSE: CWT) (“California Water”), all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=CWT as the Company’s latest news hit the wire. On June 07, 2018, the Company announced that it has initiated a tender offer (“the Offer”) to acquire all of the outstanding shares of SJW Group (NYSE: SJW) for $68.25 per share in cash. The Offer is scheduled to expire on August 03, 2018, unless the offer is extended. Register today and get access to over 1,000 Free Research Reports by joining our site below:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, California Water Service Group and SJW Group most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

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www.active-investors.com/registration-sg/?symbol=SJW

California Water Believes Offer Provides SJW’s Stockholders Significantly Greater Value than Existing Agreement with Connecticut Water

Commenting on the announcement, Martin A. Kropelnicki, Chief Executive Officer (CEO) and President of California Water, stated that the Company strongly believes that its offer provides SJW’s stockholders with significantly greater value than the existing agreement with Connecticut Water, as well as immediate liquidity for their shares. Kropelnicki stated that, by taking this step, California Water is reinforcing its commitment to a combination with SJW and are providing all SJW’s stockholders a voice in this process.

SJW Advises Stockholders to Take No Action in Response to Tender Offer

The Board of Directors of SJW, in consultation with SJW’s management, legal and financial advisors, and consistent with its fiduciary duties, has agreed to carefully review and consider all aspects of the Offer. The Board intends to advise stockholders of its formal position regarding California Water’s Offer within 10 business days by making available to stockholders and filing with the Securities and Exchange Commission (SEC) a solicitation/recommendation statement on Schedule 14D-9. SJW’s stockholders have been advised to take no action at this time.

SJW remains subject to the terms of the definitive merger agreement with Connecticut Water, and SJW’s Board has not changed its recommendation in support of SJW’s merger of equals with Connecticut Water.

Acquisition Proposal Made in April 2018

On April 26, 2018, California Water confirmed the proposal to acquire SJW for $68.25 per share in an all-cash transaction valued at approximately $1.9 billion, including the assumption of debt. The Company’s proposal, which exceeds SJW’s all-time high closing share price, represented a 30% premium to SJW’s share price at the time of proposal. In light of SJW’s refusal to engage, and as part of its commitment to consummating a transaction with SJW, California Water has decided to take its proposal directly to SJW’s stockholders in the form of a tender offer.

SJW rejected the offer and continued to be committed to its existing merger agreement with Connecticut Water, which remained on track to close during Q4 2018.

About SJW Group

Headquartered in San Jose, California, SJW Group is the parent company of San Jose Water, SJWTX, Inc., and SJW Land Co. Together, San Jose Water and SJWTX, Inc. provide water service to more than one million people in San Jose, California, and nearby communities and in Canyon Lake, Texas, and the nearby communities. SJW Land Co. owns and operates commercial real estate investments.

About California Water Service Group

California Water is the largest subsidiary of the California Water Service Group. The Company is the largest investor-owned American water utility west of the Mississippi River, and the third largest in the country. Formed in 1926, the San Jose-based Company serves more than 472,000 customers through 28 Customer and Operations Centers throughout the state.

Stock Performance Snapshot

June 08, 2018 – At Friday’s closing bell, California Water Service Group’s stock marginally dropped 0.13%, ending the trading session at $39.05.

Volume traded for the day: 181.81 thousand shares.

Stock performance in the previous three-month period – up 3.44%; and past twelve-month period – up 7.43%

After last Friday’s close, California Water Service Group’s market cap was at $1.87 billion.

Price to Earnings (P/E) ratio was at 10.93.

The stock has a dividend yield of 1.92%.

The stock is part of the Utilities sector, categorized under the Water Utilities industry. This sector was up 0.2% at the end of the session.

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