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Nov. 30, 2012 /PRNewswire/ -- 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
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 not conditioned upon any minimum number of shares being tendered, but will be subject to other conditions that are described in the offer to purchase. UTStarcom intends to fund share purchases in the tender offer with cash on hand.
Jefferies & Company, Inc. will serve as dealer manager for the tender offer. The information agent for the tender offer is Alliance Advisors LLC, and the depositary is Computershare Trust Company N.A. The offer to purchase, the letter of transmittal and the related materials are being mailed to UTStarcom shareholders. Shareholders, banks and brokers may call the dealer manager at (877) 547-6340 (toll free) for any questions regarding the tender offer or the information agent at (877) 777-5603 (toll free) for additional copies of the tender offer documents.