Mermaid flags merger talks with unlisted company

Fremantle-based Mermaid Marine Australia Ltd has confirmed that it is in discussion with an unlisted third party regarding a possible merger.

At this stage, discussions are incomplete and no binding agreement has been entered into. Any merger would be subject to a number of conditions, including the approval of Mermaid Marine shareholders at a general meeting.

Although the merger mechanism has not yet been finalised, the discussions currently contemplate that Mermaid Marine will issue new shares to the third party in exchange for the third party's business.

Following any merger as presently proposed, Mermaid Marine would remain listed on the ASX and continue to operate in its core business. THe third party would become the majority shareholder of Mermaid Marine and have baord representation.