Longkloof Limited really wants to get full control of the the pornographic content purveyor, New Frontier Media, as an aggressive takeover bid of the company just heated up further with an increase in the unsolicited bid.
Longkloof Limited is an offshore Channel Islands investment company. Longkloof Limited's parent is the South African investment company Hosken Consolidated Investments (HCI). HCI is the parent firm of South Africa's e.tv. HCI own 64% of the broadcaster e.tv through its subsidiary Sabido Investments.
New Frontier Media produces and distributes pornographic movies and owns the porn channel Penthouse TV and The Erotic Networks, or TEN, which packages VaVoom, Juicy and XTSY. Longkloof Limited is already the biggest single shareholder in Longkloof Limited with about 15,9% shareholding but does not control the board.
Longkloof Limited made its first unsolicited offer for New Frontier Media in March. That was followed by a competing offer from Playboy TV distributor Manwin Holdings.
According to reports, HCI through Longkloof Ltd, originally acquired the stake in New Frontier Media a few years ago due to plans to start a pornographic channel that Sabido Investments would run for MultiChoice's DStv pay TV platform. MultiChoice, the company which approached Sabido Investments, eventually didn't follow through with the plan.
HCI, through Longkloof Ltd, sits with the 15,9% stake and aggressively wants the whole company. Longkloof Limited has now increased its unsolicited bid to $1,75 per share.
Hosken Consolidated Investments, through Longkloof Ltd, has also put forth the names of 4 members to the 6 member board of directors of New Frontier Media.
In written notice to New Frontier Media, Longkloof Ltd has indicated that it wants to nominate TV executive Eric Doctorow, Mahomed Khalik Ismail Sherrif (Sabido's chief commercial officer as well as e.tv's chief commercial officer), Willem Deon Nel (chief financial officer of Sabido as well as chief financial officer of e.tv) and Barbara Wall (until recently executive vice president of development, production and current programming at Lionsgate Television) for New Frontier Media's board.
According to Multichannel News, in a letter to New Frontier Media's board of directors on Wednesday this week, 23 May, Longkloof Ltd expressed its frustration with what it called the special committee's "inaction".
According to the Dow Jones Newswires Longkloof Limited's offer is now about $28,3 million for the shares of New Frontier Media.
The porn giant Manwin - which already operates Playboy TV through its Playboy Plus Entertainment division and also owns YouPorn and Twistys, as well as Spankwire, Webcams Tube8, ExtremeTube, KeezMovies, Mofos, ExtremeTube, JuicyBoys and PornHub - has made a competing $24 million offer for New Frontier Media, according to CNBC.
