8/05/2021 Company News

Ecofin Exercises Long-term Shareholder Position to Engage Covanta Holding Corporation to Reconsider Transaction Price with EQT Infrastructure


LONDON – August 05, 2021 – Ecofin Advisors Ltd (“Ecofin”) and its affiliates sent a letter to the Board of Directors of Covanta Holding Corporation (“Covanta”) outlining why Ecofin intends to vote against the proposed acquisition of Covanta by EQT Infrastructure (“EQT”).

“We believe active engagement with portfolio companies is a key aspect in our ability to advocate positive results for all shareholders. The announcement made by Covanta on July 14, 2021, that it had entered into a definitive agreement to be acquired, was not at all surprising to us given the ongoing strategic review. However, we were very disappointed to read that the board endorsed the low offer price of $20.25 per common share. We believe that the offer price fails to capture the intrinsic value of Covanta and more importantly fails to capture the substantial value creation opportunities over the next few years”, said Michel Sznajer, Portfolio Manager at Ecofin. “As we believe the Company is on a very attractive growth and profitability path, with a much lower risk profile and attractive structural drivers over the medium to long-term, we are at a loss to understand why the board would accept to sell the Company at a price more in line with the problematic past than the bright future and at a large discount to peers despite better relative attractiveness. In continuation with the good historical relationship between Ecofin and the Company, we hope the board will engage with disappointed shareholders. Our intent in publicly sharing our views is to provide transparency to all of our investors.”

Further engagement is anticipated after receiving additional information included in the proxy materials. Read the full letter sent to the Board here.

About Ecofin

Ecofin is a sustainable investment firm dedicated to uniting ecology and finance. Our mission is to generate strong risk-adjusted returns while optimizing investors’ impact on society. We are socially-minded, ESG-attentive investors, harnessing years of expertise investing in sustainable infrastructure, energy transition, clean water & environment and social impact. Our strategies are accessible through a variety of investment solutions and seek to achieve positive impacts that align with UN Sustainable Development Goals by addressing pressing global issues surrounding climate action, clean energy, water, education, healthcare and sustainable communities. Ecofin Investments, LLC is the parent of registered investment advisers Ecofin Advisors, LLC and Ecofin Advisors Limited (collectively "Ecofin"). Learn more at www.ecofininvest.com.

Cautionary Statement Regarding Forward-Looking Statements

This press release contains certain statements that may include “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical fact, included herein are "forward-looking statements." Although Ecofin believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Other than as required by law, Ecofin does not assume a duty to update this forward-looking statement.

Safe Harbor Statement

This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.

Contact Information

For more information contact Maggie Zastrow at (913) 981-1020 or info@tortoiseecofin.com.