UTStarcom Announces Receipt of a Preliminary Non-Binding Proposal to Acquire the Company
March 31 2017 - 10:36AM
UTStarcom Holdings Corp. (NASDAQ:UTSI) (the “Company” or
“UTStarcom”) today announced that its board of directors (the
“Board”) has received a preliminary non-binding proposal letter,
dated March 31, 2017, from Shah Capital Opportunity Fund LP,
Himanshu H. Shah (together with Shah Capital Opportunity Fund LP,
the “Shah Parties”), Hong Liang Lu and his affiliates (the
“Lu Parties”) and Tenling Ti (“Mr. Ti”, collectively with the Shah
Parties and the Lu Parties, the “Consortium Members”), to acquire
all of the outstanding ordinary shares of the Company not owned by
the Consortium Members, for US$2.15 in cash per ordinary share. A
copy of the proposal letter is attached hereto as Exhibit A. The
Board has formed a special committee consisting of two independent
and disinterested directors, Sean Shao and Xiaoping Li (the
“Special Committee”), to consider the proposal.
The Company cautions its shareholders and others
considering trading its securities that the Board has just received
the proposal letter and neither the Board nor the Special Committee
has had an opportunity to carefully review and evaluate the
proposal or make any decision with respect to the Company’s
response to the proposal. There can be no assurance that any
definitive offer will be made, that any definitive agreement will
be executed relating to the proposed transaction or that this or
any other transaction will be approved or consummated. The Company
does not undertake any obligation to provide any updates with
respect to this or any other transaction, except as required under
applicable law.
About UTStarcom Holdings Corp.
UTStarcom (NASDAQ:UTSI) is a global telecom
infrastructure provider dedicated to developing technology that
will serve the rapidly growing demand for bandwidth from
cloud-based services, mobile, streaming, and other applications. We
work with carriers globally, from Asia to the Americas, to meet
this demand through a range of innovative broadband packet optical
transport and wireless/fixed-line access products and solutions.
The Company’s end-to-end broadband product portfolio, enhanced
through in-house Software Defined Networking (SDN)-based
orchestration, enables mobile and fixed-line network operators and
enterprises worldwide to build highly efficient and resilient
future-proof networks for a range of applications, including mobile
backhaul, metro aggregation, broadband access and Wi-Fi data
offload. Our strategic investments in media operational support
service providers expand UTStarcom’s capabilities in the field of
next generation video platforms. UTStarcom was founded in 1991,
started trading on NASDAQ in 2000, and has operating entities in
Hong Kong; Tokyo, Japan; San Jose, USA; Delhi and Bangalore, India;
Hangzhou, China. For more information about UTStarcom, please visit
http://www.utstar.com.
An Exhibit is attached to this release and can be
viewed
at http://www.globenewswire.com/NewsRoom/AttachmentNg/24c40658-cebd-4d07-af53-26f5bf686617.
For investor and media inquiries, please contact:
UTStarcom Holdings Corp.
Tel: +852-3951-9757
Fei Wang, IR Director
Email: fei.wang@utstar.com
Ning Jiang, Investor Relations
Email: njiang@utstar.com
In the United States:
The Blueshirt Group
Mr. Ralph Fong
Tel: +1 (415) 489-2195
Email: ralph@blueshirtgroup.com
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