Adult services company New Frontier Media said April 3 that it has hired Avondale Partners as its financial adviser to examine and consider a broad range of strategic alternatives.
New Frontier said the review will evaluate it current long-term business plan against a alternatives that have the potential to maximize strategic value. The review process will be over seen by New Frontier's special committee of independent directors, which is currently evaluating two unsolicited acquisition proposals from Longkloof Ltd., and Manwin Holdings. The Special Committee is also being assisted by its legal advisor, Alston & Bird LLP. New Frontier Media is being advised by Holland & Hart LLP.
"Our Board of Directors remains very enthusiastic about New Frontier Media's future prospects and has made no decision to sell the company," said Special Committee chairman Alan Isaacman in a statement. "However, in keeping with our commitment to act in the best interests of all shareholders, we have decided to undergo a thorough review of strategic alternatives to determine the best opportunities for maximizing shareholder value at this time. Accordingly, while our financial advisor will assist us with reviewing and responding to the unsolicited acquisition proposals that we have received, as well as any other acquisition proposals that we may receive, the scope of our financial advisor's assignment will be comprehensive and not limited to any specific vision for New Frontier Media's future."
The Special Committee, working with its financial and legal advisors, intends to proceed in a timely and orderly manner to consider a broad range of possible strategic alternatives for New Frontier Media and their implications, but has not set a definite schedule for the completion of its evaluation.
New Frontier shares were up 2% (3 cents) to $1.63 in afternoon trading Wednesday.