31/07/2009 - 09:00

Imdex terminates $28m Coretrack merger

31/07/2009 - 09:00

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Mining services company Imdex has terminated a $28 million merger with drilling specialist Coretrack after due diligence did not meet expectations.

Imdex terminates $28m Coretrack merger

Mining services company Imdex has terminated a $28 million merger with drilling specialist Coretrack after due diligence did not meet expectations.

"Imdex remains committed to its growth strategy including pursuing increased business within the global oil and gas industry," Imdex said in a statement.

Earlier this month, Imdex and Coretrack announced an all-scrip merger deal to create an entity focused on the burgeoning oil and gas sector.

Under the proposed deal, Imdex was to issue 0.61 of its shares for every Coretrack share held, and issue a further 0.305 shares for every Coretrack listed option.

Imdex shareholders would have held 82 per cent of the combined entity.

The merger of both companies would have brought together Coretrack's Core Level Recorder System and Imdex's down hole technology division, used in the oil and gas sector.

The merger was subject to due diligence, which Imdex today said did not meet its satisfaction.

Shares in Coretrack were untraded at 33 cents and Imdex shares were also untraded at 60.5c at 10:38 AEST.

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