29th Jul 2019 16:08
(Alliance News) - Cadogan Petroleum PLC said on Monday investee Proger's annual results confirmed "strong growth".
Proger is a Rome-based engineering company.
Earnings before interest, tax, depreciation and amortisation was up 24% year-on-year to EUR11.3 million, Cadogan said, while pretax profit was up nearly 4% year-on-year to EUR6.1 million.
Cadogan provided Proger's parent company with a EUR13.4 million loan in February to
subscribe a capital increase in Proger.
The agreement also provided an option to convert the loan into an anticipated indirect 22% equity interest in Proger, via a capital increase. Following this taking place, Cadogan's indirect interest in Proger is anticipated to increase to 25%.
Cadogan said: "The 2018 financial results would increase the value of Cadogan's indirect participating interest, should the company's shareholders approve the exercise of the conversion option."
Cadogan Chief Executive Guido Michelotti said: "Proger's 2018 results confirm that the convertible loan agreement offers exposure to realizable growth at a balanced level of risk to Cadogan shareholders; it also diversifies Cadogan's portfolio, which is a key pillar of our strategy."
Shares in Cadogan were down 0.4% at 7.22 pence in London Monday.
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