Canadian Fund Manager Sold Millions of Carillion Shares

© Copyright Gordon Brown

One of the largest shareholders of Carillion sold a big stake in the struggling contractor.

Letko, Brosseau & Associates the Canadian fund manager, sold millions of Carillion shares, reducing its interest from 4.61 percent to 3.46 percent per stake of 15m shares.

Shares in the Wolverhampton-headquartered firm increased sharply last Wednesday morning after hitting new lows on Tuesday. Currently, they are 1.3 percent up from the closing price on Tuesday.

The market capitalisation of the firm is lingering around £85m, less than a tenth of the company’s valuation at the start of 2017.

On Friday, Investors of Carillion were dealt a fresh blow after the company revealed that it was anticipating to breach banking covenants, got a deferral on their testing from lenders and issued the company’s third profit warning of the year.

The announcement prompted the government of the United Kingdom to reaffirm its support for Carillion as it attempts to resize operations.

Carillion continues to secure important contracts despite fears regarding the company’s future. On Monday, it announced that it had been included on a shortlist of firms that were selected to build new schools in the United Kingdom.

Keith Cochrane, the interim boss, said: “we continue to retain the confidence of key customers despite the group’s current challenges”.