Item 1.01 Entry into a Material Definitive Agreement.
On May 27, 2022, Vantage Holdings International ("VHI"), a wholly owned
subsidiary of Vantage Drilling International (the "Company" or "Vantage") closed
the sale to ADES Arabia Holding ("ADES Arabia"), of all of the issued and
outstanding equity of VHI's wholly-owned subsidiary, Emerald Driller Company
("EDC") for a purchase price of US$170,000,000 in cash, together with an
additional $34 million in cash in respect of contract preparation cost
reimbursements where mobilization and contract preparation costs would be
largely reimbursable by the client to ADES after closing. The purchase price is
be subject to certain potential adjustments. $4 million of the proceeds was
retained in escrow as security for such potential price adjustments. EDC is the
owner of the Emerald Driller jackup rig, the Sapphire Driller jackup rig and the
Aquamarine Driller jackup rig, each of which is operating in Qatar, along with
their respective drilling contracts. In addition, subsidiaries of Vantage and
ADES entered into a support services agreements, pursuant to which a subsidiary
of Vantage will, in exchange for customary fees and reimbursements, provide
support services to ADES Arabia in respect of the three rigs operating in Qatar
for three years. ADES is a 49% partner in the Company's ADVantage Drilling
Services SAE joint venture in Egypt.
The Company continues to evaluate potential uses of the proceeds from the
transaction.
Item 8.01 Other Events.
On May 31, 2022, the Company issued a press release announcing the consummation
of the sale of the equity interests of EDC. A copy of the press release is
furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated
herein by reference.
***
The information above includes forward-looking statements within the meaning of
the Securities Act of 1933 and the Securities Exchange Act of 1934. These
forward-looking statements are subject to certain risks, uncertainties and
assumptions identified above or as disclosed from time to time in the company's
filings that it may be required to make, or may otherwise voluntarily make, with
the Securities and Exchange Commission. As a result of these factors, actual
results may differ materially from those indicated or implied by such
forward-looking statements. Vantage disclaims any intention or obligation to
update publicly or revise such statements, whether as a result of new
information, future events or otherwise.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
Exhibit Number Description of Exhibits
99.1 Press Release of Vantage Drilling International, dated
May 31, 2022
104 Cover Page Interactive Data File (embedded within the
Inline XBRL document)
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