VTDRF - Vantage Drilling: Will The Company Be Up For Sale After Recent Jackup Divestitures To ADES?

• Discussing recent agreement to sell the majority of the company's jackup fleet to ADES Group.
• Once the transaction has been consummated, Vantage Drilling's owned fleet will be down to just four rigs (two drillships and two jackups).
• Since the beginning of 2019, the company has used more than $300 million in cash from operating activities.
• Company faces a $350 million debt maturity in November 2023.
• While shares appear cheap from a NAV perspective, I am hesitant to assign a buy rating given major uncertainties regarding the company's future direction.
• Even in case management will be pursuing a sale, the size, composition and strategic positioning of the fleet are likely to limit potential bids.

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