Vantage Drilling Company received an unsolicited proposal to acquire all the outstanding shares of the Company at a premium to the current market price.
The proposal was subject to due diligence and requested an exclusivity period. In addition, the proposal was conditioned on the Company abandoning its contemplated senior notes and equity offerings.
After careful consideration, including consultation with its outside financial and legal advisors, the Company determined that it is in the best interests of the Company and its shareholders to proceed with the financings in light of its business plan and financing needs. Accordingly, the Company has rejected the unsolicited proposal.
Vantage’s primary business is to contract drilling units, related equipment and work crews primarily on a dayrate basis to drill oil and natural gas wells. Vantage also provides construction supervision services for, and will operate and manage, drilling units owned by others. Through its fleet of eight owned and managed drilling units, Vantage is a provider of offshore contract drilling services globally to major, national and large independent oil and natural gas companies.
Source:iStockAnalyst, July 27, 2010: