Sustainable resins producer Cardia Bioplastics (Melbourne / Australia; www.cardiabioplastics.com) has agreed a merger with Australian films specialist Stellar Films (Deer Park, Victoria; www.stellarfilmsgroup.com), with which it originally partnered in the production of environmentally friendly “Biohybrid” films tailored for the personal care and hygiene products industry.

Under the terms of the proposed merger, Cardia Bioplastics will acquire all of the shares of Stellar Films and issue ordinary shares in Cardia Bioplastics to the owners of the films producer. It is anticipated that Cardia shareholders will own 42% and the owners of Stellar Films will own 58% of the merged group. An extraordinary general meeting of Cardia Bioplastics shareholders is expected to be held in early 2015.