Evoworld, a private company set up for the expressed purpose of taking control of Neon, has been pursuing the company since September, when it offered its fellow shareholders 3.5c per share for 30% of Neon's total shares in a bid to take control of the company without owning a majority.

Neon slammed the move at the time, calling the bid "highly unusual".

More recently, Evoworld lost a vote at a general meeting in November to install its members on the board, subsequently issuing Neon with a summons to the Supreme Court of Western Australia over the validity of the vote.

Evoworld's unsolicited proportional takeover sought to replace Neon's board, ousting chairman Alan Stein, founding managing director Ken Charsinsky and non-executive director John Lander and installing Timothy Kestell, Ross Williams and Peter Pynes as directors.

Now, with an offer of 3.8c per Neon share to acquire 50% of the company, Evoworld has finally managed to get its foot in the door, edging out MEO and having Kestell and Pynes appointed to the board as non-executive directors.

Lander has resigned from the board while Charsinsky will resign if Evoworld manages to nab 30% of shares, sending its offer unconditional and making way for Williams to join as a non-executive director.

The current 19.99% shareholder has also canned the court proceedings and is expected to issue a target statement in January.

As a result of the move to support the Evoworld offer, Neon has reimbursed $400,000 to MEO for terminating the merger agreement.

MEO expects that a competing offer from Mosman, previously deemed inferior, will now go ahead, though it has advised its shareholders not to take any action until it the MEO directors issue a formal recommendation.