26/11/2014 - 15:48

Neon board under pressure from Evoworld

26/11/2014 - 15:48

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Oil and gas producer Neon Energy has said the result of its recent shareholder meeting gives it a mandate to pursue a merger with Melbourne-based MEO, despite receiving renewed notice that key shareholder Evoworld Corporation will call a meeting to remove directors.

Neon board under pressure from Evoworld
A Neon Energy vessel.

Oil and gas producer Neon Energy has said the result of its recent shareholder meeting gives it a mandate to pursue a merger with Melbourne-based MEO Australia, despite receiving renewed notice that key shareholder Evoworld Corporation will call a meeting to remove directors.

Evoworld has notified Neon it will call and arrange a general meeting of shareholders to remove the directors and appoint three Evoworld nominees - Timothy Kestell, Peter Pynes and Ross Williams - to be held in January.

It is the second time in under a month that Evoworld, which holds just less than 20 per cent of Neon’s shares, has attempted to remove directors after a similar resolution was defeated on November 12.

At the November meeting, Neon shareholders also voted to oppose a takeover offer from Evoworld, at a rate proportional to the company’s share price.

The company announced earlier this month a proposed merger with MEO, in which MEO shareholders would receive 0.74 Neon shares for every MEO share they hold.

Both companies committed to sharp cuts in group overheads following the merger.

Neon closed up 2.9 per cent to 3.5 cents per share, while MEO fell 5.3 per cent to 1.8 cents per share.

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