The Canadian subsidiary of busted UK plc Carillion is not in liquidation and operations "continue uninterrupted", it said this week.
Carillion employed around 6,000 staff in Canada on a range of activities from infrastructure and hospital public-private partnerships (PPPs) to outsourced services.
There were fears those jobs could be on the line after the parent company collapsed in compulsory liquidation on Monday (15 January).
But the following day Carillion Canada issued a short statement saying its operations were "not in liquidation and continue uninterrupted".
"Our employees, subcontractors and suppliers in Canada continue to be paid and we remain committed to delivering safe, quality services for our clients," the statement said.
"Our Canadian leadership is currently assessing the situation and working with stakeholders to ensure continuity of operations."
With its parent gone, however, one analyst said Carillion Canada is a ripe target for takeover.
Frederic Bastien, analyst with investment firm Raymond James, noted that Carillion bought Ontario contractor Vanbots Construction in 2008, and won contracts to build the country’s first two PPP hospitals.
His research note, reported by broadcaster CBC, said Carillion Canada’s focus is on PPP ownerships, facilities management and outsourced services such as road maintenance and power line construction.
Bastien said Carillion Canada’s assets, which include equity positions in several hospitals, would be attractive for a number of large potential buyers in Canada.
- Click here for GCR’s backgrounder on Carillion’s Canadian activities.
Image: Carillion used this photograph to illustrate its work with oil companies in Canada and elsewhere (Carillion)