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Rookery to commence construction +2

09:35 22-Mar-19


Covanta has finalized the financial agreements needed to proceed with Rookery.  Covanta and GIG will each have 40% ownership in the plant.  French giant Veolia will own the remaining 20%.  I see its involvement as one more sign of the value and effectiveness of Covanta's technology.  Covanta will gain additional income from technical oversight during construction and managing operations once the plant goes live in 2022.

This development was expected, and is not getting any notice this morning.  Thus, CVA shares are down slightly with the broader market, which is understandable in light of the macro news from last night.  Nonetheless, this is an important step forward, and if the U.K. can avoid complete disarray, then I think my $16.67 price will serve as more of a floor going forward, even after the ex-dividend date, which is a week from yesterday.