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      Covanta (CVA) Stock Rose 7% Premarket. How Did That Happen? - Stocks Telegraph

      By ST Staff

      Published on

      July 14, 2021

      1:07 PM UTC

      Covanta (CVA) Stock Rose 7% Premarket. How Did That Happen? - Stocks Telegraph

      Covanta Holding Corporation (CVA) shares were up 7.32% in pre-market trading at $19.94 at the last check. The value of Covanta stock decreased -1.01% or $0.19 last session to $18.58. While the session was underway, shares of CVA fluctuated between $18.4421 and $18.77. Shares of CVA stock traded on the day decreased to 0.68 million, less than its 50-day volume of 0.97 million and below the 0.93 million shares traded throughout the year.

      The CVA stock has advanced 105.76% over the past year, and the stock has moved up 4.68% in the past week. A total of 35.92% has been gained by CVA stock in the last six months, and 37.73% has been gained in the last three months. CVA shares have returned 41.51% thus far this year. Furthermore, the price to earnings ratio of CVA stock is 422.27. An acquisition deal involving CVA is boosting CVA stock.

      What is CVA’s acquisition deal?

      Covanta is a leading provider of sustainable waste and energy management solutions. Approximately 21 million tons of municipal and business wastes are safely converted into clean, renewable electricity through the CVA’s Waste-to-Energy (“WtE”) facilities every year, generating enough electricity to power one million homes and reuse 600,000 tons of metals. As a result of its extensive network of treatment and recycling facilities, CVA also offers solutions to companies who are seeking solutions to some of today’s most challenging environmental issues.

      A definitive agreement between Covanta and EQT Infrastructure (“EQT”) was announced today.

      • CVA’s shares will be acquired by EQT at a price of $20.25 per share as part of the agreement.
      • On June 8th, the day before initial speculation of a deal broke, CVA’s share price was $14.78.
      • The purchase price represents approximately 37% more than that price.
      • CVA shareholder approval and customary government approvals are needed for the acquisition.
      • CVA expects that this transaction will close by the end of the year.
      • Resulting from a competitive sale process, the agreement has no financing conditions.
      • Covanta operates facilities in North America, Europe, and the UK, making it the world’s leading waste-to-energy provider.
      • More than a million homes are powered by CVA’s renewable electricity each year from waste processed at over 40 facilities.
      • The comprehensive analysis CVA conducted during the past nine months has been solely focused on improving shareholder value.
      • A strategic review by CVA certainly yielded EQT’s recognition of the value of CVA’s businesses, and the transaction represents a successful outcome of that review.

      How will this deal turn out?

      EQT will work with Covanta (CVA)’s management team to capitalize on Covanta’s capabilities, including a thriving waste-to-energy pipeline in the UK, as well as its integrated environmental products. A majority of CVA’s management team is expected to remain in place and the company’s corporate headquarters will remain in Morristown, New Jersey.

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