New Frontier has agreed to add a representative to its board from investment firm Longkloof — which owns 15.9% of the programmer’s shares — if it doesn’t sell itself by year end, the company says this afternoon. In return, Longkloof has dropped its proxy fight to elect four of its allies to the board. The investor firm also dropped its lawsuit charging that New Frontier violated its fiduciary obligation to shareholders by trying to block the proxy fight and by refusing to consider Longkloof’s purchase offer. New Frontier’s board has already designated a Special Committee to review a possible sale. The committee hired Alston & Bird and Avondale Partners to advise on legal and financial issues. “With these matters now fully resolved, the Special Committee can concentrate entirely on its ongoing strategic review process, which encompasses evaluating, among other options, acquisition proposals received from the Longkloof parties and other parties,” the Committee said. Luxembourg-based Manwin — which bought Playboy TV late last year — has also offered to buy New Frontier. New Frontier’s shares are up 48.5% so far in 2012 as it appeared more likely that it will be sold. New Frontier produces VOD features, it also offers the Penthouse TV premium channel and pay-per-view services packaged as The Erotic Networks (or TEN) that include Xtsy, Juicy, and VaVoom.
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This article was printed from http://www.deadline.com/2012/07/new-frontier-sale-proxy-fight-settles/