Vantage Drilling has entered into a merger agreement under which Norway-based Eldorado Drilling will acquire the offshore drilling contractor in a transaction valuing the company's equity at approximately $257.6 million.
Under the agreement, Vantage shareholders will receive $19.00 per share in cash. The transaction has been unanimously approved by Vantage's board of directors, which has recommended that shareholders vote in favor of the deal.
The acquisition will be implemented through a merger of Eldorado Drilling Merger Sub Limited, a wholly owned subsidiary of Eldorado, with Vantage Drilling. Vantage will survive the merger as a wholly owned subsidiary of Eldorado and retain the name Vantage Drilling International Ltd.
Based on 13.56 million shares outstanding, the merger consideration implies an equity value of about $257.6 million before taking account of restricted stock units.
The board said it received a fairness opinion from Clarksons Securities, which concluded that the $19.00-per-share consideration was fair from a financial perspective to shareholders, subject to the assumptions and qualifications outlined in the opinion.
Completion of the transaction remains subject to customary conditions, including shareholder approval, regulatory requirements and other closing conditions outlined in the merger agreement. A shareholder meeting to vote on the transaction is expected to be held on June 18, 2026, with completion targeted for the beginning of the third quarter of 2026.
Eldorado's principal shareholder has committed $125 million in equity funding support for the transaction, consisting of $64.5 million in cash equity and the conversion of a $60.5 million shareholder note into equity.
Following completion, Vantage plans to apply for the delisting of its shares from Euronext Growth Oslo.
“We are excited to join forces with Eldorado. Our teams share a commitment to safety, operational excellence, and customer success. This transaction strengthens our ability to invest in our people and assets, pursue high-quality opportunities across regions, and maintain the standards our customers expect,” said Ihab Toma, Chief Executive Officer of Vantage Drilling.
“Today’s announcement marks an important step in building a scaled, resilient offshore drilling platform. By combining Vantage Drilling’s global operating capabilities and long-term customer relationships with Eldorado’s investment program, we believe we can deliver enhanced solutions for customers, accelerate growth opportunities, and create lasting value,” added Bernie Wolford, Chairman of Eldorado.