July 13, 2018 / 10:16 PM / 2 years ago

Canada's Callidus Capital plunges after scrapping dividend

July 13 (Reuters) - Shares of Callidus Capital Corp , 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 reut.rs/2Jh1Wjq an investigation that raised questions about how Catalyst values the companies in its portfolios, including Callidus, a core holding across its private equity funds. ($1 = C$1.32) (Reporting by Akshara P in Bengaluru)

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