Cardia Bioplastics (ASX:CNN) is continuing due diligence enquiries regarding its merger with Stellar Films Group.
Both parties have agreed to extend the date by which due diligence is completed and transaction documents executed to on or before 23rd January 2015.
The merger, should it proceed, is intended to create a leader in sustainable packaging.
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% of the merged group and the owners of Stellar Films will own 58% of the merged group.
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.
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.
It is headquartered in Melbourne and operates manufacturing facilities in Melbourne and Port Klang, Malaysia.
