UTStarcom says TDI to increase ownership stake in company to about 36%
UTStarcom announced that its strategic partner Tongding Interconnection Information Co., intends to further increase its ownership stake in UT to approximately 36% through the purchase (by related entities) of 9.2M shares from certain current shareholders of the company. The sale is subject to approval by relevant US and Chinese authorities. TDI will pay about $5.35 per share, for a total investment of approximately $49.2M at the closing of the transaction. UTStarcom's CEO Tim Ti commented, "TDI is already one of our largest shareholders, and we are pleased that their growing confidence in our outlook is leading to larger ownership position. As our strategic partner, we believe both of us have substantial business opportunities together that can drive growing shareholder value. Because they are paying a substantial premium to UT's share price at current levels, we see this as a vote of confidence in these business prospects." The selling shareholders are entities related to Shah Capital Opportunity Fund LP and Hong Liang Lu.