Carillion shares leap on UK healthcare sale update

Oliver Gill
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Carillion is seeking to offload its UK healthcare and Canadian arms (Source: Getty)

Carillion shares leapt this lunchtime after reiterating it has "received proposals from more than one credible" party to buy its UK healthcare business.

The firm's share price jumped over eight per cent as the announcement was made.

In a statement shortly before 1pm today, Carillion said:

In view of media speculation about a possible sale of Carillion's UK Healthcare business, the Board of Carillion confirms that, consistent with Carillion's announcement on 29th September 2017, it has received proposals from more than one credible counterparty for a possible acquisition of that business.

A further announcement will be made as and when appropriate.

Read more: Carillion hit by £200m of extra write-downs as government lends support

Carillion has pinned hopes of survival in the short-term on raising cash by offloading its Canadian and UK healthcare arms. At the end of last month, the firm revealed half-year losses had swelled to £1.2bn and booked an additional £200m of contract write-downs.

The London-listed firm sent its shares into a nosedive in July when it unveiled a catalogue of problems into £845m of contract write-downs.

While the UK healthcare sale is important, it is thought that the Canadian sale will net the firm the majority of the cash it needs to bolster its balance sheet.

With a number of Canadian construction M&A deals running live and having just completed, local sources have questioned whether there would be a substantial buyer population for Carillion's Canadian arm.

Read more: Embattled Carillion races against the clock to find Canadian cash

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