The merger of kiwifruit post-harvest operators EastPack and Satara is now unconditional following today's second vote on the issue.

An 88 per cent majority of Satara transactor shareholders approved the merger in Te Puke today on their second vote.

The first vote on February 22 failed to obtain the required 75 per cent majority by 0.2 per cent.

A trading halt on Satara investor shares comes into effect from 5pm today prior to the merger that will take effect on March 20, 2013.

The EastPack shareholders and the four other Satara interest groups did not vote again as they already indicated overwhelming support for the merger on February 22.

All five of Satara special interest groups have now reached the 75 per cent threshold for the merger to happen. EastPack shareholders voted 97 per cent in support of the merger last month.

The combined Eastpack/Satara is expected to pack 25-27 million Class One trays this year representing about 27-30 per cent of NZ kiwifruit production. It will be known as EastPack.

Satara Chairman Hendrik Pieters and EastPack's Chairman Ray Sharp say that the vine disease Psa has reduced New Zealand volumes by 22 per cent in the last two years and is one of the key drivers of the merger.

'The merger provides the ability to fully utilise some of the industry's most modern, efficient packing and coolstore sites to maximise returns to grower shareholders in these difficult times,” they say.

Growers' fruit will be packed at facilities in Opotiki, Edgecumbe, Te Puke, Katikati and Northland.

Two existing Satara sites will be mothballed but will be re-developed with new plant and equipment when kiwifruit volumes increase.

'The decision to merge these two companies is a logical and pragmatic business decision endorsed by both companies' shareholders,” say Hendrik and Ray.

The Satara Shareholders' decision today is welcomed by Ray, which follows the earlier support from EastPack shareholders.

'The new, enlarged entity will help cement the Single Point of Entry and enable us to work collaboratively with Zespri and all other suppliers to improve returns to growers in this challenging environment,” says Ray.

Chairman of the new EastPack is Ray Sharp, CEO is Tony Hawken. Current Satara directors Hendrik Pieters and Mike Maltby will join the EastPack board. The co-operative company structure will be retained.

EastPack employs 250 fulltime employees and more than 2000 seasonal staff. The turnover is greater than $130million. Satara will delist from the NZAX.

Satara grower shareholders will receive one EastPack Transactor share for each dollar paid-up on their Satara Transactor shares, one EastPack Investor share for each Satara Investor share held, a five cent fully imputed special dividend for each Investor Share held and an opportunity to purchase additional EastPack Investor shares at 65 cents a share.

Satara non-grower investors and grower investor shareholders holding excess investor shares were to be offered 60 cents per investor share plus the five cents dividend.

The companies' chairmen say this will provide an opportunity for non-grower investors to exit their investment in Satara at a fair price and a substantial premium relative to the last traded price for such shares, considering the current prospects for the kiwifruit post-harvest industry.