Evoworld Makes Unsolicited Proportional Takeover Bid for Neon Energy

Australia's Neon Energy Limited (Neon Energy) reported Wednesday that it has received a letter from Evoworld Corporation Pty Ltd (Evoworld) announcing Evoworld’s intention to make an unsolicited proportional takeover bid for 30 percent of the ordinary shares in Neon Energy that Evoworld and its associates do not currently own or control.

Evoworld’s proportional takeover bid will not be open for acceptance by shareholders until Evoworld’s Bidder’s Statement is delivered to Neon Energy and subsequently dispatched to Neon Energy shareholders. Evoworld has indicated that it intends to provide a Bidder’s Statement to Neon Energy “in the near future”. The Bidder’s Statement cannot be dispatched to Neon Energy shareholders until 14 days after it is delivered to Neon Energy. Neon Energy shareholders should take no action until they receive the Bidder’s Statement from Evoworld and Neon Energy’s formal response and recommendation in its Target’s Statement.

Accordingly, there is no need for Neon Energy shareholders to take any action at this time.

Neon Energy also notes that, under its Constitution, a proportional takeover bid must be approved by shareholders (other than the bidder and its associates) in order to proceed. Shareholders will therefore have the opportunity to vote on whether the bid proceeds in due course.

The Neon Energy Board has Serious Concerns about the Evoworld Proportional Bid

Evoworld intends to acquire 30 percent of each shareholder’s holding at a price of $0.0321 (AUD 0.035) per share, subject to a number of conditions.

The Board has serious concerns about a number of aspects of this proportional bid.

The bid would give Evoworld control of Neon Energy without Evoworld owning the majority of shares on issue. Under the offer, Evoworld would end up owning 38 percent of the issued share capital of the company at a price that is a 10 percent discount to Neon Energy’s cash backing per share, and on terms that require Evoworld to gain control of the Board as a condition to the bid proceeding. In light of this, the Board questions the motivation behind the bid.


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