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Cadogan Petroleum enters into loan agreement with Italian firm Proger

“This loan agreement creates for Cadogan’s shareholders an exposure to a company with material growth potential at a balanced level of risk..,” said non-executive chairman Zev Furst
Cadogan
Proger is involved in major projects including significant oil and gas installations

Cadogan Petroleum PLC (LON:CAD) has entered into a €13.4mln loan agreement with Proger Managers & Partners Srl (PMP).

PMP has a 59.6% participating interest in Proger Ingegneria Srl, which has a 67.9% participating interest in Proger spa, an Italian engineering firm.

READ: Cadogan Petroleum beats production target for 2018

Proger, which provides engineering, project management and security solutions to companies, is involved in major projects around the world, including significant oil and gas, energy and infrastructure installations.

The principal of the loan is secured by a pledge on PMP's participating interest in Proger Ingegneria Srl, up to a maximum guaranteed amount of €13.4mln.

In exchange for providing the loan, Cadogan has a call option to buy 33% of the participating interest that PMP has in Proger Ingegneria, giving it an indirect 22% interest in Proger. 

The call option can be exercised at any time between the sixth and 24th months following the execution date of the loan agreement.

Cadgon has the right to designate two out of the seven directors in each of Proger and Proger Ingegneria’s boards of directors. 

 It can also designate one of the three members in each of Proger and Proger Ingegneria boards of statutory auditors.

“This loan agreement creates for Cadogan’s shareholders an exposure to a company with material growth potential at a balanced level of risk; it also offers both companies the benefit of potential operational synergies for the development of their respective businesses,” said Cadogan non-executive chairman Zev Furst.

“The loan is in-line with the company’s strategy to leverage its balance sheet position to offer such exposures, while diversifying the Company’s overall geographic and industry risk profile.”

Last year, Proger generated revenue of €110mln and earnings (EBITDA) of €9.1mln.

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