The South Australian Supreme Court has approved the convening of Simeon Wines' shareholders following the announcement of its merger with fellow Australian producer Brian McGuigan Wines.

Simeon said the Explanatory Statement will be mailed to shareholders next week with the shareholder meeting to be held on June 14.

In February, the two companies agreed on an A$436m (US$225m) merger to create the country's fourth largest listed wine company. Each company will control 50% of the new winemaker, which is expected to boost earnings per share in 2002/2003.

This latest round of consolidation in Australia creates a sizeable player, three times as big as the next mid-tier wine concern.

Simeon shareholders will receive 10 McGuigan Wines shares for every 16 Simeon Wines shares they hold, which values Simeon Wines at A$229m.