SINGAPORE, March 19 (Reuters) - Singapore's dominant taxi operator Comfort Group Ltd said its shareholders had voted for a merger with Delgro Corp on Wednesday, paving the way for creating Singapore's largest land transport group.
A Comfort official said the firm had received 100 percent approval from shareholders present at a special meeting to vote on the merger plan with Delgro, which is the main provider of bus services in the city state.
The merger of the two transport firms was widely expected to go through although some investors initially said the terms favoured Delgro shareholders.
Under the merger, Comfort shareholders would receive 1.245 shares of the new company for every Comfort share they own, while Delgro shareholders would get 3.342 shares for each Delgro share.
Delgro shareholders are expected to vote on the merger later on Wednesday. Approval from shareholders of both firms is needed for the merger to go through.
If approved, the integration of the two companies would have a market value of around S$1.5 billion ($847 million), making it bigger than rail operator SMRT Corp .
Both shares were suspended for trading from Wednesday morning, pending the outcome of the meeting. Comfort shares ended 1.5 cents higher on Tuesday at S$0.925 while Delgro shares finished four cents higher at S$2.52.