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

Under the proposed Vitaco deal, shareholders will receive A$2.25 ($1.71) in cash per share, which values the company at about A$314 million ($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 A$2.10 ($1.60), valuing the company at A$292 million ($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 A$2.11 ($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.