AWB Ltd shareholders voted overwhelmingly on Tuesday to support the $1.24 billion takeover proposal of Canadian firm Agrium Inc for the Australian rural services provider.

Apart from the share value proposal, Agrium is also set to absorb AWB's total net debt of $535 million that comes with the package acquisition offer but its getting through depended much on a favourable majority vote of shareholders, with at least 75 percent affirming the merger.

During the grain marketer's special shareholders' general meeting, up to 97.8 percent of shares pitched their support on the proposal while 80 percent of shareholders had elected to push for the merger.

AWB chair Peter Polson enjoined the company's shareholders to throw their support on the deal as he argued prior to the actual voting that failure of the agreement could significantly pull down the stock value of the agricultural firm.

Calling the endorsement as a historic landmark for AWB, Mr Polson stressed that Agrium's proposal was attractive enough as the attached offer of $1.50 per share is representative of substantial premium trading prices.

Also, 97.7 percent of shareholders voted to allow the removal of a 10 percent cap on AWB's shareholding cap while another 98 percent affirmed the company's proposal of drawing from other sources aside on profits to make future dividend payments.

Mr Polson said that the separate voting was undertaken to pave the way for the progression of the proposal's takeover scheme as he added that a scheduled court hearing would be held on November 18 to look on the scheme of arrangement.

Pending the ruling by the Australian Taxation Office (ATO), AWB informed its shareholders during the meeting that dividend payments should be forthcoming soon but the company needs to wait first for the final word from ATO.

Mr Polson said that AWB is hoping that the tax office would give its thumbs up on the modification contained in the takeover scheme, which states that dividends declared by the board could be slashed as against the $1.50 per share offer of Agrium so long as the value do not exceed the 20 cents mark per share.