Vantage Drilling International announced the signing of a definitive agreement to merge with Norwegian firm Eldorado Drilling AS in a transaction that values the company’s equity at approximately US$257.6 million. The deal is part of a trend toward strengthening its position in the global offshore drilling market and aims to bolster the operational capabilities of both companies.
Under the agreed terms, Vantage Drilling shareholders will receive US$19 per share in cash. The proposal was unanimously approved by the company’s board of directors, which also recommended that shareholders support the transaction during the meeting scheduled for June 18, 2026.
The merger strengthens the offshore drilling business
The merger will be executed under Bermuda law through the integration of an Eldorado Drilling subsidiary with Vantage Drilling. Upon completion of the process, Vantage will continue to operate as a wholly owned subsidiary of Eldorado and will retain its current corporate name.
The consideration offered represents a significant valuation for shareholders and is financially backed by Eldorado’s main shareholder. This investor has committed US$125 million to support the transaction, including US$64.5 million in cash and US$60.5 million through the conversion of existing debt into equity.
Financial backing and corporate approval
Vantage’s board of directors concluded that the agreement represents the best alternative for the company and its shareholders. As part of the process, Clarksons Securities AS issued a financial opinion that deemed the consideration offered fair from the shareholders’ perspective.
In addition to investor approval, the transaction will need to meet several customary closing conditions, including obtaining certain consents and fulfilling the contractual obligations established between the parties.
The company expects to complete the merger during the beginning of the third quarter of 2026, provided that the requirements set out in the agreement are met.
The merger promotes the integration of the offshore market
The combination of both companies seeks to create an offshore drilling platform with greater scale and capacity to serve international oil and gas projects.
Ihab Toma, CEO of Vantage Drilling, noted that the merger will allow them to strengthen investments in personnel and assets while developing new opportunities in different regions. Bernie Wolford, president of Eldorado Drilling, emphasized that integrating the operational capabilities of both companies could generate greater growth opportunities and improved customer service.
Likewise, the operation reflects the growing interest of industry players in strengthening their positions in an environment where operational efficiency, equipment availability and execution capacity continue to be key factors for competing in the offshore drilling business.
Next steps after the merger
Once the transaction is completed, Vantage will request the delisting of its shares from Euronext Growth Oslo. Compensation for shareholders holding shares through Euronext Securities Oslo will be made in Norwegian kroner using the official exchange rate published by Norges Bank before closing.
With this transaction, Vantage Drilling and Eldorado Drilling are moving towards creating a more robust business structure to compete in the international offshore drilling market and meet the demand for energy projects in different regions of the world.
Source: Globenewswire
Photo: Shutterstock
