Australia's Vitaco is set to enter into a scheme agreement worth more than 300 million Australian dollars (US$228 million) with Shanghai Pharmaceuticals and Chinese investment firm Primavera Capital.

Under the proposed Vitaco deal, shareholders will receive 2.25 Australian dollars (US$1.71) in cash per share, which values the company at about 314 million Australian dollars (US$238.98 million), the Australian Associated Press reported on Thursday

Vitaco shares were initially offered to investors, when it was listed on the Aussie share market less than a year ago at 2.10 Australian dollars (US$1.60), valuing the company at 292 million Australian dollars (US$222.23 million).

News of the possible merger was favorably received by shareholders as Vitaco shares soared more than 20 percent on Thursday up by 35 cents at 2.11 Australian dollars (US$1.61) at 14:10 AEST.

However, the takeover bid is yet to pass several other conditions including a shareholder and a court approval as well as receiving a green light from Australia's Foreign Investment Review Board.

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