BOULDER, CO—It would seem that the two outstanding offers to acquire publicly traded New Frontier Media have only served to reinvigorate New Frontier's interest in itself. The Boulder, Colorado-based "provider of transactional television services and a distributor of general motion picture entertainment" announced Tuesday that a "Special Committee of the Board of Directors of New Frontier Media has retained Avondale Partners, LLC, a nationally recognized full service investment banking firm, as its financial advisor to examine and consider a broad range of strategic alternatives."
The company's strategic review will also include assessments of the two unsolicited offers, the first of which was made in early March by Longkloof Limited, a majority shareholder unhappy with the performance of the company and its board of directors, and the second of which was made by Manwin, which improved upon Longkloof's offer of $1.35/share by offering $1.50/share.
Despite those offers, New Frontier is clearly leaving its options open. "New Frontier Media cautions that there are no guarantees that the strategic alternative review process will result in a transaction or, if a transaction is approved by the New Frontier Media Board of Directors, whether the terms or timing of such a transaction will be approved by shareholders," Tuesday's announcement stated, adding, "New Frontier Media currently does not intend to make any further public announcements regarding its Special Committee's review of possible strategic alternatives until such time as the New Frontier Media Board of Directors approves a transaction or otherwise determines that further disclosure is appropriate."
Following the announcement by New Frontier a few minutes before 5 p.m. EDT, NOOF saw after market gains of 19 percent, according to streetinsider.com.