Australia-based Cardia Bioplastics has signed a proposed merger with Stellar Films Group, which manufactures film-based packaging catering to personal care, hygiene and medical product industries with facilities in Melbourne, Australia, and Port Klang, Malaysia. Under 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. It is expected that Cardia shareholders will own 42% of the merged group and the owners of Stellar Films will own 58%.
The terms sheet provides for an exclusivity period of 4 months from November 21. The companies originally partnered to produce Cardia's Biohybrid films tailored for the global personal care and hygiene products industry. The Biohybrid film produced on Stellar Films' proprietary cast film process, reportedly exhibits a high-performance property profile and 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.