Shareholders of Tatura Milk Industries have approved a merger with Bega Cheese.

Under the scheme approved on Wednesday, 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 24 million new Bega Cheese shares and increase the number of Bega Cheese issued shares to over 150 million.

At the current share price Bega Cheese’s market capitalisation will be about $250 million.

Group revenue in 2012 will be about $1 billion, the company said on Wednesday.

Tatura is a Victoria-based dairy foods manufacturer and exporter of premium specialised dairy ingredients, dairy nutritionals and dairy consumer foods.

Bega Cheese is a listed dairy producer based in southern coastal New South Wales.

An application will be made to the Supreme Court of Victoria on Friday for approval of the merger scheme, and it is hoped the merger can be finalised on December 23.

As a result of the outcome of the Tatura Milk meetings on Wednesday, Bega Cheese will also welcome Rick Cross and Jeff Odgers, Tatura Milk farmer directors, onto the Bega Cheese board.