Carillion eases pressure on creaking finances as it sells chunk of healthcare business
CARILLION eased the pressure on its creaking finances as it agreed to sell a large chunk of its UK healthcare business to Serco for £50.1 million and secured a new £140 million line of financing from its core lenders.
Carillion is looking to raise £300 million by selling off non-core operations
The support services group is rebuilding after plunging to a £1.15 billion half-year pre-tax loss as it wrote off under-performing contracts.
It is looking to raise £300 million by selling off non-core operations by the end of next year.
This is set to include the potential sale of its Canadian businesses.
The deal with Serco is expected to be signed in weeks, according to latest reports.
Carillion plunged to a £1.15 billion half-year pre-tax loss
Today we are announcing progress on a number of fronts and whilst our customers and creditors continue to be supportive, much remains to be done
Interim chief executive Keith Cochrane said yesterday in a statement to the media: "Today we are announcing progress on a number of fronts and whilst our customers and creditors continue to be supportive, much remains to be done."
He added: "We remain focused on executing our disposals and cost savings programmes while continuing our discussions with our lenders and other stakeholders to explore further ways of strengthening Carillion's balance sheet."
Carillion shares rose yesterday from 2¾p to 46½p.