July 13, 2018 / 10:17 PM / 4 months ago

Canada's Callidus Capital plunges after scrapping dividend

(Reuters) - Shares of Callidus Capital Corp (CBL.TO), owned by private equity firm Catalyst Capital Group Inc, slumped nearly 29 percent on Friday after the Canadian lender eliminated its dividend payments to support business growth.

Callidus closed a new loan for about C$125 million ($95 million), signaling a resumption of growth in the company’s loan portfolio, the company said.

Callidus’ stock, which fell as much as 43 percent to a record of C$3.01, was the biggest percentage loser on the Toronto Stock Exchange on Friday.

In March, Reuters published an investigation that raised questions about how Catalyst values the companies in its portfolios, including Callidus, a core holding across its private equity funds.

Reporting by Akshara P in Bengaluru

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