Cardia Bioplastics Limited announced that it has signed an agreement with Stellar Films under which it is proposed to merge the businesses of the two groups.
“The merger, should it proceed, is intended to create a leader in sustainable packaging,” Cardio Bioplastics said.Cardia Bioplastics Limited announced that it has signed an agreement with Stellar Films under which it is proposed to merge the businesses of the two #
The proposed merger is subject to completion of satisfactory due diligence by both parties, execution of a sale agreement, shareholder and regulatory approval and other customary closing conditions.
Under the terms of the proposed merger, Cardia Bioplastics will acquire all of the shares and units issued in Stellar Films and issue ordinary shares in Cardia Bioplastics to the owners of Stellar Films.
Following completion of the proposed merger, it is currently anticipated that Cardia shareholders will own 42 per cent of the merged group and the owners of Stellar Films will own 58 per cent of the merged group.
The agreement provides for an exclusivity period of four months from November 21, 2014. During the exclusivity period the parties will undertake due diligence enquiries and act in good faith to agree the commercial terms of the proposed merger, and enter in to a sale agreement.
Cardia Bioplastics and Stellar Films originally partnered to produce environmentally friendly, high quality and cost competitive Biohybrid films tailored for the global personal care and hygiene products industry.
The Biohybrid film produced on Stellar Films proprietary cast film process, exhibits a high performance property profile.
It is differentiated through its unique soft touch and warm feel that is ideal for personal care product applications such as nappies/diapers, feminine or incontinence products.
Stellar Films is an Australian privately owned company that manufactures and globally markets high quality cast films to the personal care, hygiene and medical product industries.
The company is headquartered in Melbourne and operates manufacturing facilities in Melbourne and Port Klang, Malaysia.
Over the last fifteen years, Stellar Films Group with average sales over the last three years of over $21 million has developed partnerships with customers in over twenty-seven countries throughout North America, Asia, Africa, the Middle East and Australia/New Zealand. (AR)
Fibre2fashion News Desk - India
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