MEO Australia Limited has received from Neon Energy Limited the Reimbursement Fee of $400,000 due and payable under the Merger Implementation Agreement (MIA).
Neon Energy and MEO entered into MIA in November. Under the proposed merger, MEO shareholders would receive 0.7369 Neon shares for each MEO share they hold. Following implementation of the Merger, Neon shareholders and MEO shareholders would each hold 50% of the Merged Group. However, Neon pulled out of the proposed merger agreement in December.
According to MEO, the Reimbursement Fee is a fee payable to MEO pursuant the MIA in circumstances where one or more Neon directors recommend that Neon shareholders accept a Competing Proposal of any kind.
MEO says that it considers the MIA to be terminated and will not proceed with the Proposed Scheme.