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Utstarcom Holdings (UTSI) – Notable Share Transactions
BEIJING, November 19, 2012 /PRNewswire/ — UTStarcom Holdings Corp. (Nasdaq: UTSI) (“UTStarcom” or the “Company”), a leading provider of media operational support services and broadband equipment products and services, today announced two significant actions to enhance liquidity.
The Board of Directors has authorized the commencement of a cash tender offer for US$30 million of the Company’s outstanding ordinary shares at a purchase price of US$1.20 per share. The Company intends to commence the tender offer by December 7, 2012. The Board of Directors has also authorized the Company to obtain required shareholder and other approvals and prepare and file the necessary documents to effect, promptly following the closing of the tender offer, a 3-for-1 reverse split of its outstanding and authorized ordinary shares. It is currently anticipated that these actions will be completed by the end of the first quarter of 2013.
William Wong, UTStarcom’s Chief Executive Officer, stated, “We believe that both of these actions will enhance shareholder value in the near- and also long-term. We remain very confident in our ability to grow and diversify the business through our recently announced new strategic plan. We are pleased that our strong balance sheet and financial position allows us to demonstrate confidence in our future prospects and enhance shareholder value via a tender offer and a reverse share split without impacting our ability to execute the plans for our strategic business transformation. In particular, the tender offer will afford liquidity to tendering shareholders and the reverse share split is expected to immediately result in an increased share price which we expect will make UTStarcom more appealing to a broader set of long-term investors and support improved liquidity and marketability.”
2012-11-19 19:00:42
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