UTStarcom Reveals Withdrawal Of Non-Binding Going Private Proposal - Quick Facts

(RTTNews) - UTStarcom Holdings Corp. (UTSI), a Chinese provider of media operational support services and broadband equipment products and services, late Friday announced that the Special Committee of its Board of Directors has received a notice from its director Hong Liang Lu, and other parties, noting that they have unanimously determined to withdraw the non-binding going private proposal dated March 27.

Hong Liang Lu, and entities affiliated with him, and Shah Capital Opportunity Fund LP and and its founder, president and chief investment officer Himanshu Shah had proposed to acquire all shares of UTStarcom not currently owned by Lu or Shah Capital in a going private deal for $3.20 per ordinary share in cash, subject to certain conditions. As per previous announcement, Lu and Shah Capital owned about 3.2 percent and 17.6 percent of UTStarcom's ordinary shares, respectively.

UTStarcom today said that its Board also appointed Himanshu Shah as a new director, effective November 1. Shah receives no compensation for his directorship. With this appointment, UTStarcom's Board of Directors will consist of eight directors.

William Wong, UTStarcom's chief executive officer, stated, "UTStarcom is committed to continuing to execute its previously announced strategic plan to transform the Company into a higher-growth, more profitable business focused on providing next generation media services and broadband equipment products."

UTStarcom shares closed today's trading at $2.83, up $0.03 or 1.07 percent.