Following completion of the proposed merger, it is anticipated Cardia shareholders will own 42% of the merged group and the owners of Stellar Films will own 58%.
Films, packaging and waste management
Cardia Bioplastics intends to hold an Extraordinary General Meeting of shareholders on March 17.
“The Cardia Bioplastics Board is excited about the intended merger with Stellar Films Group, a business that will complement and strengthen our Cardia Bioplastics business in its product offering, market position and global reach,” said Richard Tegoni, chairman, Cardia Bioplastics.
“The combined business has the scale and resources to deliver the successful implementation of our profitable business growth strategy in our carrier bags, films & packaging, and waste management target market segments.
“We look forward to working with the Stellar Group Board and management to bring the merger transaction to a successful conclusion.”
Cardia Bioplastics and Stellar Films originally partnered to produce environmentally friendly, Biohybrid films tailored for the global personal care and hygiene products industry.
The cooperation between the companies over the last three years saw a strategic fit of the two businesses and the major benefits of a merger.
Stellar Films is an Australian privately owned company that manufactures and markets 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.