New Frontier to end lawsuit against suitor
Longkloof Ltd., based in the Channel Islands and a subsidiary of Hosken Consolidated Investments Ltd., a South African company, announced in March it was trying to take over New Frontier. Longkloof already owned 15.9 percent of New Frontier (Nasdaq: NOOF).
In May, New Frontier sued Longkloof, Hosken and individuals affiliated with the company, claiming they were illegally trying to stack New Frontier Media’s board of directors in an attempt to influence New Frontier’s decision about the takeover.
A special committee formed by New Frontier’s board has been considering Longkloof’s proposal, as well as a rival bid submitted in March by Manwin Holding SARL. Manwin is a Luxembourg-based owner of online pornography sites including YouPorn and PornHub.
New Frontier Media’s filing in U.S. District Court alleges Longkloof was attempting to use a proxy contest to gain control of the company at its 2012 annual shareholder meeting.
The agreement requires Longkloof to end its proxy contest and attempt to nominate four new directors. Longkloof will be able to designate for appointment one new director if New Frontier is not sold or merged into another company by Dec. 31.
The special committee formed by New Frontier will continue to evaluate the acquisition proposals.
More breaking news...
Bug eyes inspire University of Colorado engineer
Cities vie to be part of 2014 bike race