UTStarcom Announces Receipt of "Going Private" Proposal at $3.20 Per Ordinary
BEIJING, March 27, 2013
BEIJING, March 27, 2013 /PRNewswire/ -- UTStarcom Holdings Corp. ("UTStarcom"
or the "Company") (NASDAQ: UTSI), a leading provider of media operational
support services and broadband equipment products and services, today
announced that its Board of Directors (the "Board") has received a preliminary
non-binding proposal letter dated March 27, 2013 from one of its Directors,
Mr. Hong Liang Lu, and entities affiliated with him (collectively, "Mr. Lu"),
and Shah Capital Opportunity Fund LP and Himanshu H. Shah (collectively, "Shah
Capital") to acquire all of the outstanding shares of UTStarcom not currently
owned by Mr. Lu or Shah Capital in a going private transaction for $3.20 per
ordinary share in cash, subject to certain conditions.
Mr. Lu and Shah Capital currently own approximately 3.2% and 17.6% of
UTStarcom's ordinary shares, respectively. According to the proposal letter,
the acquisition is intended to be effected through a newly formed acquisition
vehicle and financed through a combination of debt and equity capital.
The Board has formed a special committee of independent directors (the
"Special Committee") consisting of three independent directors, Baichuan Du,
Sean Shao and Linzhen Xie, to consider this proposal. The Special Committee
intends to retain advisors to assist it in its work.
The Board cautions the Company's shareholders and others considering trading
in its securities that the Board just received the non-binding proposal from
Mr. Lu and Shah Capital and that no decisions have been made by the Special
Committee with respect to the Company'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. The Company does not undertake any obligation to provide any
updates with respect to the proposal or any other transaction, except as
required under applicable law.
About UTStarcom Holdings Corp.
UTStarcom is focused on providing next generation media operational support
services in the rapidly growing markets for TV over IP services and broadband
equipment products and services. UTStarcom is committed to meeting the
evolving needs of cable and broadband service providers to enable a more
personalized entertainment experience. The Company sells its media operational
support services and broadband equipment products and services to operators in
both emerging and established broadband and cable markets around the world.
UTStarcom was founded in 1991 and has traded on NASDAQ in 2000. It has
operational headquarters in Beijing, China and research and development
operations in China and India. In 2011, the Company deployed a revamped
growth strategy that concentrates on providing media operation support
services. For more information about UTStarcom, visit the Company's Web site
SOURCE UTStarcom, Inc.
Contact: Jing Ou-Yang, UTStarcom Holdings Corp., +86-10-8520-5153,
email@example.com; May Shen (Beijing), +86-10-8591-1951,
May.Shen@fticonsulting.com; Daniel DelRe (Hong Kong), +852-3768-4547,
Daniel.DelRe@fticonsulting.com; Eric Boyriven (New York), +212-850-5671,
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