Playboy Enterprises Inc said on Monday that it has received an offer from founder Hugh Hefner to buy all of its outstanding shares and take the company private, in a deal worth around $185 million.

Hefner has offered to buy all shares of PEI he doesn't currently own, for $5.50 per share in cash, a premium of about 40 per cent to its closing price of $3.94 on Friday.

He already owns around 69.5 per cent of Playboy's Class A common stock and 27.7 per cent of its Class B stock.

Playboy said Hefner is partnering with Rizvi Traverse Management, which will raise financing for the transaction from major lenders.

Hefner, in his proposal letter, said he is not interested in any sale or merger of Playboy Enterprises, selling Hefner's shares to any third party or entering into discussions with any other financial sponsor for a similar transaction.

In his proposal, Hefner said he only intends to partner with Rizvi Traverse Management LLC and that he had discussions with the firm in connection with the transaction. He also said that Rizvi Traverse has contacted major lenders regarding potential financing and has assured ample financial resources to complete the transaction.

Hefner, however, said that both he and Rizvi Traverse contemplate that the definitive agreements would not contain a financing contingency.

Hefner also said he is not interested in any sale or merger of PEI, selling his shares to any third party or entering into discussions with any other financial sponsor for a transaction of the nature out of concern for the PEI brand, the editorial direction of the magazine and PEI's legacy. 

The board, however, cautioned PEI's shareholders and others that it has only received the proposal and that no decision has been made with respect to PEI's response to the proposal. 

"There can be no assurance that any definitive offer will be made, that any agreement will be executed or that this or any other transaction will be approved or consummated. If the proposal moves forward, PEI's board of directors will form a special committee of independent directors to consider the proposal. The committee would retain independent financial advisors and legal counsel to assist it in its work," PEI said.

Playboy is one of the most recognised and popular consumer brands in the world. PEI publishes Playboy magazine in the US and abroad and creates content for distribution via television networks, websites, mobile platforms and radio. It has also licensing agreements whereby the Playboy brand appears on a wide range of consumer products in more than 150 countries as well as retail stores and entertainment venues.