New Frontier Media, the massive pay TV porn provider which was/is the target of a hostile take-over bid by Longkloof Limited, a sister company to broadcaster e.tv in South Africa, has settled its fight (for now) by agreeing to add a representative from Longkloof Limited to its board.
Longkloof Limited owns 15,9% of New Frontiers Media's shares. Longkloof Limited is an offshore Channel Islands investment company. Longkloof Limited's parent however is the South African investment company Hosken Consolidated Investments (HCI) and HCI is the parent firm of South Africa's e.tv.
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.
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.
In return for adding a representative from Longkloof Limited to the board, Longkloof Limited will be dropping its lawsuit charging that New Frontier Media violated its fidicuary duty to shareholders by refusing to consider Longkloof's aggressive purchase offer.
