Investment firm Longkloof Ltd. offers $1.35 a share

Boulder, Colo.-based New Frontier Media, a top adult entertainment distrib, said it’s received an unsolicited takeover offer from investment firm Longkloof Limited, which has offered to acquire outstanding shares for $1.35 each.

The board said it has formed a committee to evaluate the offer from Longkloof, which is based in the Channel Islands and owns 15% of New Frontier already. New Frontier, which is almost a penny stock, saw its shares spike nearly 16% to $1.31 on Friday.

In an open letter to New Frontier, Longkloof said the company has refused to engage in constructive dialogue despite numerous attempts “over the past few weeks to engage in meaningful discussions with your regarding our interest in acquiring” the business. It chided the board for what it called a “dismal record” that saw the stock sink from more than $9 five years ago.

New Frontier’s assets include the Erotic Network, a pay-per-view service with six channels and Penthouse TV, which it distributes.

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