MORRISTOWN, N.J., Oct. 3, 2016 /PRNewswire/ -- Covanta Holding Corporation (NYSE: CVA) ("Covanta" or the "Company"), a world leader in sustainable waste and energy solutions, announced today it has completed a transaction with CITIC Environment, a subsidiary of CITIC Limited, China's largest conglomerate enterprise, for the sale of approximately 90 percent of Covanta's ownership interest in Chongqing Sanfeng Environmental Industrial Group Co., Ltd ("Sanfeng Environment").
The sale to CITIC was the final piece of an integrated transaction in which Covanta exchanged ownership interests in three Energy-from-Waste ("EfW") facilities in China for an approximately 15 percent ownership interest in Sanfeng Environment, and CITIC agreed to purchase most of Covanta's stake in Sanfeng Environment. The exchange was completed in March of 2016. The sale resulted in cash proceeds to Covanta of approximately $100 million.
Covanta and Sanfeng Environment had previously established a joint venture in 2007, and together had participated in the China EfW market through project and technology development, construction and O&M services, and equipment supply.
"This was a significant transaction that enabled us to monetize existing assets at an attractive valuation and redeploy the proceeds consistent with our capital allocation policy," said Stephen J. Jones, Covanta's President and CEO. "We've already utilized approximately half of the proceeds to repay revolver borrowings, and the remaining cash will give us additional flexibility to consider several options, including furthering our pipeline of growth opportunities in the United States, China and other international markets."
Covanta is a world leader in providing sustainable waste and energy solutions. Annually, Covanta's modern Energy-from-Waste facilities safely convert approximately 20 million tons of waste from municipalities and businesses into clean, renewable electricity to power one million homes and recycle approximately 500,000 tons of metal. Through a vast network of treatment and recycling facilities, Covanta also provides comprehensive industrial material management services to companies seeking solutions to some of today's most complex environmental challenges. For more information, visit covanta.com.
Cautionary Note Regarding Forward-Looking Statements
Certain statements in this press release may constitute "forward-looking" statements as defined in Section 27A of the Securities Act of 1933 (the "Securities Act"), Section 21E of the Securities Exchange Act of 1934 (the "Exchange Act"), the Private Securities Litigation Reform Act of 1995 (the "PSLRA") or in releases made by the Securities and Exchange Commission ("SEC"), all as may be amended from time to time. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of Covanta Holding Corporation and its subsidiaries ("Covanta") or industry results, to differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements. Statements that are not historical fact are forward-looking statements. For additional information see the Cautionary Note Regarding Forward-Looking Statements in the Company's 10-K, previously filed with the Securities and Exchange Commission.
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SOURCE Covanta Holding Corporation