Monday 18 March 2019 9:33 pm

Kier to appoint former Carillion hire Andrew Davies as chief executive

Embattled construction firm Kier is set to appoint the executive who was hired by Carillion weeks before the contractors collapse to lead a turnaround at the company.

Andrew Davies, who was due to step into the role of chief executive at Carillion before it plunged into liquidation last year, is expected to be appointed as the new boss of Kier tomorrow, Sky News reported.

Read more: Embattled outsourcer Kier's net debt spirals again after 'accounting error'

Davies, who will succeed former Kier chief executive Haydn Mursell, was named incoming chief executive of Carillion in October 2017 however did not take up the role as the company collapsed in January 2018.

Mursell was the target of a campaign to oust senior management, spearheaded by veteran investor and 15 per cent shareholder Neil Woodford.

Read more: Kier shares rise as it appoints Scottish director

Shareholders were unhappy with the handling of mounting debt at the firm, which had seen share prices plummet.

However, when Kier tried to pay off this debt by giving existing investors the chance to buy new, discounted stock, only 37.7 per cent of the new shares were bought up.