UTStarcom Announces Further Investment by Key Shareholder
February 13 2019 - 6:00AM
UTStarcom (“UT” or “the Company”) (NASDAQ:UTSI), a global
telecommunications infrastructure provider, today announced that
its strategic partner Tongding Interconnection Information Co.,
Ltd. (“TDI”) intends to further increase its ownership stake in UT
to approximately 36% through the purchase (by related entities) of
9.2 million shares from certain current shareholders of the
Company. The sale is subject to approval by relevant US and
Chinese authorities. TDI will pay about $5.35 per share, for
a total investment of approximately $49.2 million at the closing of
the transaction.
UTStarcom's Chief Executive Officer Mr. Tim Ti
commented, “TDI is already one of our largest shareholders, and we
are pleased that their growing confidence in our outlook is leading
to larger ownership position. As our strategic partner, we
believe both of us have substantial business opportunities together
that can drive growing shareholder value. Because they are
paying a substantial premium to UT’s share price at current levels,
we see this as a vote of confidence in these business
prospects.”
The selling shareholders are entities related to Shah Capital
Opportunity Fund LP and Mr. Hong Liang Lu.
The closing of the transaction is subject to customary closing
conditions, including the obtaining of all necessary authorizations
and approvals of The Committee on Foreign Investment in the United
States (the “CFIUS Approval”) and (i) completing filing with and/or
obtaining approval by the National Development and Reform
Commission of the People's Republic of China ("PRC"), (ii)
completing filing with and/or obtaining approval by the Ministry of
Commerce of the PRC, and (iii) completing registration with a
commercial bank supervised by the State Administration of Foreign
Exchange of the PRC.
As announced in September 2018, UTStarcom formed a strategic
partnership with TDI to jointly market and distribute the
respective companies’ products and services in China and
international markets. With the strategic relationship
established, UT and TDI's initial thrust is focused on developing
the optical fiber cable businesses in India as well as marketing
and selling UTStarcom’s flagship PTN and SyncRing products in
China.
About UTStarcom Holdings Corp.
UTStarcom is committed to helping network operators offer their
customers the most innovative, reliable and cost-effective
communication services. UTStarcom offers high performance
advanced equipment optimized for the most rapidly growing network
functions, such as mobile backhaul, metro aggregation and broadband
access. UTStarcom is further leveraging its technology
expertise to bring smart networked products to new applications,
such as its goBox automated refrigerated dispenser for retail
stores. UTStarcom has operations and customers around the
world, with a special focus on Japan and India. UTStarcom was
founded in 1991 and listed its shares on the Nasdaq Market in 2000
(symbol: UTSI). For more information about UTStarcom, please
visit http://www.utstar.com.
For investor and media inquiries, please
contact:
UTStarcom Holdings Corp.Tel: +852-3951-9757
Ms. Fei Wang, Director of Investor Relations Email:
fei.wang@utstar.com
Ms. Ning Jiang, Investor RelationsEmail: njiang@utstar.com
In the United States:
The Blueshirt Group Mr. Ralph FongTel: +1 (415) 489-2195Email:
ralph@blueshirtgroup.com
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