Vantage Drilling shareholders have approved the proposed merger with Eldorado Drilling, advancing a transaction that will place the offshore drilling contractor under Eldorado’s ownership.

The approval was secured during a special general meeting held last week. Under the terms of the agreement, Vantage Drilling will become a wholly owned subsidiary of Eldorado Drilling. Following completion of the transaction, the surviving entity will continue operating under the name Vantage Drilling International Ltd.

As part of the deal, shareholders of Vantage Drilling will receive $19 per share in cash. The transaction values the company’s equity at approximately $257.6 million.

Funding for the merger includes $125 million of equity committed by Eldorado’s principal shareholder. The package consists of $64.5 million in cash equity and the conversion of $60.5 million in shareholder notes. Eldorado’s principal shareholder is also acting as guarantor under the merger agreement.

The merger has not yet closed and remains subject to customary closing conditions. Vantage Drilling stated that additional updates will be provided as the remaining conditions are either satisfied or waived.