The Australian wine companies, Evans & Tate and Cranswick Premium Wines Ltd, announced on Friday that the merger between the two companies will be going ahead but under revised terms.

Under the revised terms, Cranswick shareholders will receive two fully paid ordinary Evans & Tate shares and A$2.50 in cash for every five Cranswick shares. This means Cranswick shareholders are receiving A$0.93 per share, against an effective value of A$1.38 per share in the original offer.

"Both companies are committed to the merger and will work together to ensure its early completion and the subsequent integration of the operations," the companies said in a joint statement.

Shares in both companies were suspended earlier on Friday pending the announcement on the merger. The revision of the terms became likely after Cranswick reported a A$23m ($12.6m) loss for the year to June 30. The revised bid values the merged group, which will trade as Evans & Tate Ltd, at approximately A$94m. It will be Australia's sixth largest wine company.