MONTREAL — Shareholders of Power Financial Corp. have approved a reorganization of the company that will see it folded into Power Corp. of Canada, eliminating a dual-holding company structure.

Under the plan, each share of Power Financial other than those held by Power Corp. and its wholly owned subsidiaries will be exchanged for 1.05 subordinate voting shares of Power Corp. and a penny in cash.

The companies have said that the reorganization is expected to benefit shareholders with a simplified corporate structure, a reduction in expenses and increased liquidity for the shares.

Power Financial says 85.79 per cent of the eligible common shares were voted, with 91.03 per cent being in favour of the reorganization.

A hearing of the Ontario Superior Court of Justice to approve the reorganization is scheduled for Wednesday.

Power Financial owns majority stakes in Great-West Lifeco and IGM Financial among its investments.