Home > News > New Frontier Reacts to Longkloof Takeover Attempt • Bookmark   • Newsletters   • Register Search Options


New Frontier Reacts to Longkloof Takeover Attempt

New Frontier Reacts to Longkloof Takeover Attempt
Get XBIZ News
May 3, 2012 12:30 PM PDT    Text size: 

BOULDER, Colo. — Adult transactional TV provider New Frontier Media's current board in a terse public statement yesterday said that it will attempt to fend off a shareholder battle for board seats and possible control of the company.

The announcement by New Frontier's board was directed at London-based Longkloof Ltd., which has been identified as a division of Hosken Consolidated Investments, which this week said it intends to nominate four individuals to New Frontier's board at its upcoming annual meeting of shareholders.

Longkloof is New Frontier's largest stockholder and, according to New Frontier's board, has been building up its holdings for the past 18 months.

Hosken's Longkloof unit earlier this year made a bid to acquire the Boulder, Colo.-based company for $1.35 per share of the stock it doesn't own. Adult entertainment giant Manwin, one month after Longkloof's bid, offered to buy the adult entertainment distributor for $1.50 per share.  

Hosken Consolidated Investments is a public company based in Cape Town, South Africa, that trades on the Johannesburg Stock Exchange under the ticker HCL.

In a statement Wednesday, Alan L. Isaacman, chairman of New Frontier Media’s special committee designed to evaluate the Hosken and Manwin bids, said that Hosken's announcement to attempt to place four members of its company represents a potential takeover battle that will be costly.

“Hosken’s threatened proxy contest is a transparent attempt to take control of New Frontier Media by placing four of Hosken’s hand-picked candidates on New Frontier Media’s six-member board who would then be in a position to give favorable consideration to Hosken’s unsolicited $1.35 per share offer.” Isaacman said.

“It is unfortunate that rather than choosing to engage constructively with the Special Committee’s financial advisor, Hosken has chosen to launch a potentially costly and distracting proxy contest.”

New Frontier said that Hosken and its affiliated companies have turned deaf when it comes to its requests for conditions, financing, timing and any government approvals.

"To date, more than three weeks later, the Hosken affiliate, while acknowledging receipt of the information request, has not provided any of the information requested or otherwise engaged in discussions with the Special Committee’s financial advisor," the company said in a statement.

"In addition, Hosken has given no indication to New Frontier Media that it is prepared to increase its proposed offer price in light of Manwin’s publicly disclosed higher competing proposal."

New Frontier, however, did say that company officials did meet with Hosken representatives, including a recent meeting with Marcel Golding, the executive chairman of Hosken, and Hosken’s U.S. representative, Adam Rothstein.

"New Frontier remains open to having future discussions with Hosken provided they are constructive," the company said. "However, the disparaging and inflammatory tone of Hosken’s various communications, in particular its [initial press release on a planned takeover of the company], both of which contain false and misleading statements, together with Hosken’s threatened proxy contest do not promote a constructive dialogue between New Frontier Media and Hosken or its representatives."

Hosken said that its four board nominees are Eric Doctorow, a former Paramount Pictures exec; Mahomed Khalik Ismail Sherrif, who is COO of Hosken unit Sabido; Willem Deon Nel, Sabido's CFO; and Barbara Wall,  a former Lionsgate exec.

More ways to get XBIZ News:  RSS Feeds  |  E-Newsletters  |  Desktop Widget  |  Mobile
Looking for porn star news and behind-the-scene videos? Check out XFANZ.com !


Dissecting an $11.9M Affiliate Marketing Judgment

The Federal Trade Commission scored another major win in early October when the 2nd U.S. Circuit Court of Appeals upheld a lower court ruling, requiring LeadClick Media LLC to pay an $11.9 million award. The... More »

Legal Protection for Amateur Shoots

Any adult industry professional who creates video content with actual first-time amateurs will come to an early knowledge that later performer regret is commonplace. Recognized performers who regularly... More »

Legal Options to Address Pirated Cam Performances

Many webcam performers have experienced a new trend in online piracy — the illegal recording and publication of live webcam performances. The “business model” is disturbingly simple:... More »
Stay informed of the latest industry developments. Get XBIZ newsletters delivered to your inbox. Subscribe today!
Enter email address:

* To manage existing subscriptions click here.

Submit your press release to
multiple news outlets with 1 click.
Subscribe to RSS news feeds or
add free content to your website.
Access XBIZ news and articles
with your mobile device.
Access the latest issues of the industry's leading trade publications in digital form. View online or download for offline viewing.


XBIZ 2017

Jan 09 - Jan 13
Hollywood, CA

XBIZ Awards 2017

Jan 12 - Jan 12
Los Angeles, CA

ANME Founders Show

Jan 14 - Jan 15
Los Angeles Marriott Burbank Airport

Everything To Do With Sex Show

Jan 20 - Jan 22
Montréal, Québec
Everyday thousands of business professionals browse XBIZ's industry directory for quality products and services. Not listed yet? Your company could be losing potential new business. Submit your company today!
Use XBIZ RSS feeds to stay informed of the latest industry developments or as a content syndication tool for your website!