SYDNEY - Australian infant formula producer Bellamy's said on Monday that shareholders vote in favor of a takeover by Chinese company Mengniu.

Under the proposed deal, Mengniu would pay A$12.65 ($8.69) per share, as well as a A$0.60 dividend per share, a 59 percent premium on Bellamy's Friday closing share price of A$8.32.

In a joint announcement to the Australian stock exchange, Mengniu's Chief Executive Officer, Lu Minfang said that Bellamy's reputation as a "leading organic brand," as well as the company's local operation and supply chain are "critical" to Mengniu.

"Bellamy's is a leading Australian brand with a proud Tasmanian heritage and track record of supplying high quality organic products," Lu said.

"Our sales growth ambitions for Bellamy's in Australia, and the broader Asia-Pacific region, will see investment in the local dairy industry to ensure the required capacity is in place to achieve these plans."

The deal will require approval by Australia's Foreign Investment Review Board, and subject to approval is expected to be finalized before the end of the year.

Bellamy's share price surged when the market opened on Monday.