Cardia Bioplastics (ASX:CNN) is advancing a merger with Stellar Films Group to create a leader in sustainable packaging.
The company has been granted an ASX trading halt in relation to the merger.
This will last until the earlier of an announcement being made or the commencement of trade on Wednesday, 21st January 2015.
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.
