Cardia and Stellar Films sign merger agreement

After announcing a proposed merger in November 2014, Cardia Bioplastics and Stellar Films Group have signed agreements to merge. While due diligence has been completed and the transaction document has been executed, the merger is still subject to certain conditions.

Stellar’s stakeholders will receive an aggregate of 55% of shares in the newly merged company. The merger is subject to the approval of both companies’ shareholders, so an extraordinary general meeting (EGM) will be held on 17 March.

If the merger is approved at the EGM, the merger will be completed around 20 March.

The two companies have previously collaborated to produce Biohybrid films for the personal care and hygiene products industry.

Headquartered in Melbourne, Stellar Films Group manufactures and markets high-quality cast films to the personal care, hygiene and medical product industries. It has manufacturing facilities in Melbourne and Malaysia.

Cardia Bioplastics has headquarters and a Global Application Development Centre in Melbourne and manufacturing plants in Nanjing, China and São Paulo, Brazil.

The combined business aims to deliver the successful implementation of a profitable business growth strategy in carrier bags, films and packaging, and waste management target market segments. The merger will expand production capacity for Biohybrid and compostable film products.