The Neon Energy board is moving forward with the “superior proposal” from Evoworld and calling off its merger plans with MEO Australia.
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Image from Neon. |
Neon entered into a bid implementation agreement (BIA) with Evoworld on 19 December. According to the BIA, Evoworld agreed to make the proportional off-market takeover offer for 50% of the ordinary shares in Neon not owned by Evoworld. Evoworld currently holds a 19.99% interest in Neon.
Neon terminated its merger implantation agreement with MEO on 22 December and paid MEO the reimbursement fee of US$325,500 (A$400,000).
According to the agreement, Evoworld will offer Neon shareholders $.031 per Neon share for 50% of their holding.
The agreement has shaken up the board of directors as John Lander resigned, and Timothy Kestell and Peter Pynes have been appointed to the board as non-executive directors. In addition, once Evoworld acquires 30% of Neon shares, Ken Charsinsky will resign from the board and Ross Williams will be appointed as a non-executive director.
According to Neon’s quarterly report in October, the Neon board regarded Evoworld’s bid as an opportunistic attempt to gain control of Neon and its substantial cash assets, without paying a premium for control or even owning a majority of shares on issue. The report went on to say that the Neon board held serious concerns for the interests of minority shareholders if Evoworld gain control of the company, particularly in light of the nature of previous similar transactions that the individuals behind Evoworld’s bid have been involved with. The board recommended that shareholders vote against the resolutions.
MEO moving on
MEO Australia says it expects New Zealand and Australia focused Mosman Oil and Gas to proceed with its intention to make an off-market takeover bid for all of the shares in MEO. Mosman is expected to serve MEO with its bidder’s statement in early February 2015.
Earlier this month, Mosman announced its proposal to takeover 100% of MEO and offer shareholders 1 AIM traded fully paid ordinary share in Mosman for every 20 ASX listed fully paid ordinary shares in MEO.
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