UTStarcom(UTSI.NASDAQ), a service provider in communication technology, announced on Feb. 1 that it has introduced three strategic investors including Beijing E-town International Investment and Development(BEIID), and will restructure its board of directors and management team. In addition, the headquarters will also be relocated.
According to the agreement, BEIID, together with another two independent investors, i.e. Ram Max Group Limited and Shah Capital Management, will invest US$48.5M to UTStarcom. BEIID, an investment company established by Beijing Municipal Government, has once invested in a number of enterprises based in Beijing Economic-Technological Development Area, including BOE.
Under the agreement, UTStarcom will offer 22M common shares at US$2.2 each. In which, BEIID will pump US$25M, while US$12.5M and US$11M will come from Ram Max Group Limited and Shah Capital Management.
Upon completion of the transaction, Du Baichuan, former Vice Chief Engineer of State Administration of Radio, Film and Television, Li Xiaoping, Vice General Manager of BEIID, and Huang Shaoqiu, Managing Director of Yellowstone Capital, will be members of the board of directors of UTStarcom.
