Redport to merge with Mega Uranium

Redport to merge with Mega Uranium

Australian uranium group Redport Ltd says it has entered into a merger agreement with Canadian company Mega Uranium.

Mega intends to make a scrip offer through its subsidiary for all Redport securities, worth approximately 14 cents for each Redport share and approximately nine cents per option.

The offer values Redport at $74 million undiluted or $98 million on a fully diluted basis.

Redport’s directors said they intended to accept the offer in the absence of a higher offer with respect to their own shareholdings and option holdings.

Under the proposed transaction, all Redport shareholders will be offered 10 new Mega shares for every 574 Redport shares held.

Redport listed option holders will be offered 10 Mega shares per 894 Redport listed options.

The offer also extends to Redport unlisted options.

Mega has acquired 15.6 per cent of Redport shares and options.

In combination with its associates, it has 18.2 per cent of its shares and options.

Mega said it would continue Redport’s operations, continue the employment of Redport’s employees and would not dispose of Redport’s uranium exploration assets.

© 2006 AAP

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