The two Australian winemakers Evans & Tate Limited and Cranswick Premium Wines Limited have executed the Merger Implementation Deed confirming the details of their proposed merger.

The key terms of the deal, which is expected to be completed in February, Cranswick shareholders receiving two fully paid ordinary Evans & Tate Shares and A$2.50 cash for every five Cranswick shares.

Cranswick convertible noteholders will have their notes varied in the name of Evans & Tate and will be extended by a further three years to October 2007 and convert into Evans & Tate fully paid ordinary shares. In addition, Cranswick convertible noteholders will be issued an option to acquire one ordinary fully paid share in Evans & Tate for every five Cranswick Convertible Notes they hold. The option will be exercisable at $1.50 and will expire in October 2007. Evans & Tate will seek to have these options listed on the ASX.

Cranswick's unlisted employee options will, upon exercise, receive fully paid ordinary shares in Evans & Tate.

The merged Cranswick and Evans & Tate group will create Australia's seventh largest wine company and sixth largest wine exporter.