UTStarcom Announces Cash Tender Offer for up to $30M of Outstsanding Ordinary Shares at $1.20/Share
UTStarcom Holdings (NASDAQ: UTSI) 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