SAN DIMAS, Calif., Jun 01, 2011 (BUSINESS WIRE) --
American States Water Company (NYSE:AWR) announced today that on May 31,
2011, it completed the sale of all the common shares of its wholly-owned
subsidiary in Arizona, Chaparral City Water Company ("Chaparral"), to
EPCOR Water (USA) Inc. ("EPCOR USA") for a purchase price of $34.6
million, including the assumption of approximately $5.6 million of
long-term debt. Approximately $29 million in cash was paid to AWR on May
31, 2011. The purchase price is subject to certain adjustments for
changes in retained earnings and is subject to audit.
AWR entered into a stock purchase agreement with EPCOR USA for the sale
of Chaparral on June 7, 2010. The Arizona Corporation Commission ("ACC")
approved the transaction in a meeting held on March 30, 2011 and issued
a final decision on April 7, 2011.
Chaparral is a public utility company serving over 13,000 customers in
the town of Fountain Hills, Arizona and a portion of the City of
Scottsdale, Arizona. The majority of Chaparral's customers are
residential and the ACC regulates Chaparral.
EPCOR USA is a wholly-owned subsidiary of EPCOR Utilities, Inc.
("EPCOR"). EPCOR builds, owns and operates water and wastewater
treatment facilities, and electric transmission and distribution
American States Water Company is the parent of Golden State Water
Company and American States Utility Services, Inc. Through its
subsidiaries, AWR provides water service to approximately 1 out of 36
Californians located within 75 communities throughout 10 counties in
Northern, Coastal and Southern California (approximately 256,000
customers). The Company also distributes electricity to over 23,000
customers in the Big Bear recreational area of California. Through its
contracted services subsidiary, American States Utility Services, Inc.,
the Company contracts with the U.S. government and private entities to
provide various services, including water marketing and operation and
maintenance of water and wastewater systems.
American States Water Company has paid dividends to shareholders every
year since 1931, increasing the dividends received by shareholders each
calendar year since 1953. On April 26, 2011, the Board of Directors of
AWR approved a $0.02 per share increase in the quarterly cash dividend
to $0.28 per share on the Common Shares of AWR. This represents a 7.7%
increase in the quarterly dividend.
SOURCE: American States Water Company
American States Water Company
Eva G. Tang
Senior Vice President-Finance, Chief Financial Officer,
Corporate Secretary and Treasurer
Telephone: (909) 394-3600, ext. 707