Recently listed Bega Cheese Limited (ASX:BGA) looks set to merge with Tatura Milk Industries after the Victoria-based dairy foods manufacturer backed the scheme of arrangement.
Tatura Milk redeemable preference shareholders will receive two Bega Cheese shares for every Tatura Milk redeemable preference share they hold.
This will result in the issue of about 24 million new Bega Cheese shares and increase the number of Bega Cheese issued shares to more than 150 million.
Bega Cheese's market capitalisation is poised to grow to $250 million and revenue is expected to hit $1 billion.
While the deal is still subject to court approval both companies hope to implement the merger on December 23, 2011.
