In an SEC filing, the company said that Warren Lichtenstein of the Steel Partners hedge fund had made an offer to finance a “management buyout.”
Lichenstein told the New Frontier board during a regularly scheduled meeting Aug. 15 that he was interested in leading a management buyout of the company.
Lichtenstein would not give details on the price he would pay for New Frontier, but he did say that he was willing to spend a premium over the market price.
On news of the filing, New Frontier rose 66 cents, an 8.4 percent spike, to $8.55, less than a dollar shy of its $52-week high of $9.38.
According to the filing, the New Frontier management team has not received any additional information regarding the proposed buyout.
Steel Partners owns 3.5 million New Frontier shares, about 14.6 percent of the company.
Earlier this month, New Frontier posted high quarterly profits and announced an optimistic financial outlook in light of growth in its PPV and VOD businesses and the recent acquisition of a film production company.
