Shah Capital Fund, LP managed by Shah Capital Management, Inc, Himanshu H. Shah, Hong Liang Lu and Tenling Ti, Chief Executive Officer at UTStarcom cancelled the acquisition of remaining 74.89% stake in UTStarcom Holdings Corp..
October 22, 2017
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Shah Capital Fund, LP managed by Shah Capital Management, Inc, Himanshu H. Shah, Hong Liang Lu and Tenling Ti, Chief Executive Officer at UTStarcom agreed to acquire remaining 74.89% stake in UTStarcom Holdings Corp. (NasdaqGS:UTSI) for $57 million on March 31, 2017. Under the terms of the agreement, the consideration involves $2.15 per share of UTStarcom Holdings Corp. Shah Capital Fund, LP, Hong Liang Lu and Tenling Ti currently holds 7.55 million, 0.02 million, 0.01 million, 0.07 million, 1.15 million and 0.18 million shares in UTStarcom Holdings Corp. The consideration will be funded by equity capital and the buyers may borrow bridge loan. Post transaction, UTStarcom Holdings Corp. will be delisted from NASDAQ. A special committee consisting of Directors will be appointed to review the acquisition. The transaction is subject to signing of a definitive agreement and approval by Board of UTStarcom Holdings Corp. David Chen and George Cheng of DeHeng Law Offices acted as legal advisor to Shah Capital Fund, LP managed by Shah Capital Management, Inc, Himanshu H. Shah and Hong Liang Lu. Duff & Phelps Securities, LLC acted as financial advisor whereas Kirkland & Ellis LLP acted as legal advisor to UTStarcom Holdings. Ralph Fong of The Blueshirt Group acted as PR advisor to UTStarcom Holdings Corp.
Shah Capital Fund, LP managed by Shah Capital Management, Inc, Himanshu H. Shah, Hong Liang Lu and Tenling Ti, Chief Executive Officer at UTStarcom cancelled the acquisition of remaining 74.89% stake in UTStarcom Holdings Corp. (NasdaqGS:UTSI) on October 23, 2017.
UTStarcom Holdings Corp. provides broadband products, solution and services. The Company delivers broadband transport and access (both wireless fidelity (Wi-Fi) and fixed line) products and solutions, optimized for mobile backhaul, metro aggregation, broadband access and Wi-Fi data offloading. Its segments include Equipment, which is focused on its equipment sales, including network infrastructure and application products, and Services, which is engaged in providing services and support of its equipment products and also the new operational support segment. The broadband product lines include family of packet transport network (PTN) products based on multi-protocol label switch transport profile (MPLS-TP) and carrier Ethernet (CE) technologies enhanced through in-house software-defined networking (SDN) platform to support the network evolution, and multi services access network (MSAN) platform. Wireless broadband access is represented by end-to-end Carrier Wi-Fi solution.
Shah Capital Fund, LP managed by Shah Capital Management, Inc, Himanshu H. Shah, Hong Liang Lu and Tenling Ti, Chief Executive Officer at UTStarcom cancelled the acquisition of remaining 74.89% stake in UTStarcom Holdings Corp..