Monica Foster commentary: Well it looks like Manwin is backing off for once – I wonder why…
from www.xbiz.com – Manwin said Tuesday evening it won’t get into a bidding war for New Frontier Media, which yesterday made an agreement with LFP Broadcasting to purchase the company for $33 million.
New Frontier Media in March received a $24.3 million cash offer from Manwin, the adult entertainment conglomerate that operates Playboy TV and numerous other adult properties.
But one day after LFP said it would pick up New Frontier Media in an all-cash deal, Manwin officials said the adult entertainment pay-per-view and video-on-demand company wouldn’t be a good fit and has decided to pass on any challenge to acquire the Boulder, Colo.-based company.
“We have looked closely at this for some time and feel that New Frontier Media is a better fit for LFP than it is for Manwin,” Manwin spokeswoman Kate Miller told XBIZ. “Thus, we do not want a fight and will not start a bidding war.”
Larry Flynt, the adult-entertainment magnate who founded Hustler magazine, has offered to buy Boulder-based New Frontier Media Inc., provider of adult pay-per-view services and mainstream entertainment, and take the company private.
New Frontier (NasdaqGS: NOOF) said Monday that LFP Broadcasting LLC, an affiliate of Flynt’s Los Angeles-based L.F.P. Inc., has offered an up-front payment of $2.02 per common share, or about, $33 million, plus a contingent cash payment of up to 6 cents a share depending on New Frontier’s cash on hand at closing.
New Frontier announced Flynt’s plans as the markets closed Monday. Company shares closed at $1.30 in regular trading, down 2.26 percent on the session, but soared in after-hours trading. (Click here for a live quote from Yahoo Finance.)
The deal is subject to at least 50 percent of outstanding shares being tendered, among other conditions.
The offered price represents a 79 premium to New Frontier’s March 8 closing stock price. That was the day before the Boulder company received a $1.35-per-share bidfrom its biggest shareholder, Longkloof Ltd., a unit of Hosken Consolidated Investments Ltd. of South Africa.
New Frontier later got a $1.50-per-share offer from Luxembourg-based Manwin Holding, which owns Playboy TV, the Wall Street Journal reports.
New Frontier’s board has unanimously recommended that shareholders tender their shares to Flynt’s company. The tender offer is to begin within 10 business days.
“This announcement represents a very positive outcome for our shareholders, who will receive complete liquidity for their shares at a very significant premium,” the board said in a statement. “We also believe that this transaction with LFP Broadcasting creates a great opportunity for our organization, cable television partners and customers as two of the premier adult media broadcasting companies join forces.”