UTStarcom Announces Tender Offer to Purchase up to 25M Shares for $1.20/Share
UTStarcom Holdings Corp. ("UTStarcom" or the "Company") (Nasdaq: UTSI), a leading provider of media operational support services and broadband equipment products and services, announced today the commencement of a tender offer to purchase up to 25,000,000 of its ordinary shares at a price of $1.20 per share, representing a 30.4% premium to the November 29, 2012 closing price on the NASDAQ Global Select Market of $0.92 per share. The tender offer is expected to expire at 5:00 P.M., New York City time, on Thursday, January 3, 2013, unless extended. In accordance with the rules of the Securities and Exchange Commission, UTStarcom may increase the number of shares accepted in the offer by no more than two percent of the outstanding shares without amending or extending the tender offer.
William Wong, Chief Executive Officer of UTStarcom, commented, "We are pleased to announce this tender offer, which reflects our confidence in the Company's future prospects and we believe is an efficient way of returning capital to shareholders and increasing long-term shareholder value."
UTStarcom's directors and executive officers have advised UTStarcom that they do not intend to tender their shares in the tender offer.
The tender offer is