UTStarcom Announces Increased Investment from Key Strategic Partner

UTStarcom (NASDAQ:UTSI) announced on Monday that its strategeic partner Tongding Interconnection (TDI) increased its ownership stake in UT to 9.9 percent through multiple transactions in late 2018.

The company engaged in telecommunications infrastructure said that TDI paid approximately US$4.54 per share of UT which translates to 30 percent premium over UT’s average share price in the last three months

As quoted in the press release:

UTStarcom’s Chief Executive Officer Mr. Tim Ti commented, “We are pleased to further strengthen ties with our strategic partner TDI.  The fact that TDI increased its position in UT, paying a substantial premium to market, is an indication of their confidence in our shared prospects.”

Ti continued, “We expect TDI’s strategic investment in our company to result in compelling benefits from a market and product standpoint.  Our technology and service expertise in overseas markets, especially Asia-Pacific, can significantly enhance their competitive position.  Furthermore, together we can capture additional 5G network opportunities.  Our technical strength in optical networking will help TDI further expand its presence in the network transmission markets, including mobile backhaul, and metro transmission.”

As announced in September 2018, UTStarcom formed a strategic partnership with TDI to jointly market and distribute the respective companies’ products and services in China and international markets.  With the strategic relationship established, UT and TDI’s initial thrust is focused on developing the optical fiber cable businesses in India as well as marketing and selling UTStarcom’s flagship PTN and SyncRing products in China.

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