Cardia Bioplastics proposed merger with Stellar Films Group
Cardia Bioplastics has signed a terms sheet with privately held Stellar Films Group (Stellar Films) to merge the businesses of the two groups with an Extraordinary General Meeting of Cardia Bioplastics shareholders expected to be held in early 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 deal, it is anticipated 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 four months from November. 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 into a sale agreement.