Neon rejects cash raid

NEON Energy's shareholders have rejected an unsolicited proportional takeover from private Perth investors Evoworld, allowing Neon space to breathe and deal with what it sees as a more favourable merger with fellow junior MEO Australia.

The Evoworld bid was an attempt to replace Neon's board, ousting chairman Alan Stein, managing director Ken Charsinsky and non-executive director John lander and installing Timothy Kestell, Ross Williams and Peter Pynes as directors.

Charsinsky said yesterday's extraordinary general meeting demonstrated a "show of support" for the company's new growth strategy.

"Neon's shareholders have had the opportunity to choose between two very different paths forward," Charsinsky said.

"Approximately 54% of Neon shares were voted, an extraordinary number given the retail nature of the company's shareholder base.

"The high level of shareholder participation and the result of the vote provides the Neon board with a mandate to continue pursuing the proposed merger with MEO, which will create a well-capitalised junior oil and gas company in a strong position to make acquisitions."

Stein has said the planned merger with MEO Australia would provide the foundations of a cashed-up junior that could make over $50 million worth of acquisitions in a buyer's market.

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