Himanshu H. Shah
's Shah Capital Management
has reported acquiring a total of 1.0 million shares of UTStarcom Holdings Corp (NASDAQ:UTSI)
. Following the increase, Shah holds in aggregate a total of 7.54 million shares, which represent of
21.01% of the company's common stock. The new securities have been acquired in one deal, at a price of $2.54 apiece.
According to the filing with the SEC, Shah acquired the shares under the terms of a purchase and sale agreement between UTStarcom Holdings Corp (NASDAQ:
UTSI) and Shah as buyers and Softbank America Inc as the seller. Softbank agreed to sell a total of over 4.88 million shares at a price of $2.54 apiece. Following the execution of the plan, Softbank sold its entire position in the company. According to a statement
, Softbank has been a major shareholder of UTStarcom since 1995 and it sold its holding due to a change in its investment strategy.
Earlier, Shah Capital Management intended to acquire UTStarcom Holdings Corp (NASDAQ:
UTSI). However, in November, the fund reported about the withdrawal
of its proposal. At the same time, in November, Shah reduced its exposure to the company to 6.54 million shares, equal to around 17%, from 6.86 million held previously.
UTStarcom Holdings Corp (NASDAQ:
UTSI) is a telecommunications company engaged in IP-based network solutions. In addition to Shah, Phil Frohlich's Prescott Group Capital Management
also holds shares of UTStarcom, its stake amassing 2.31 million shares, with a reported value of $6.35 million, as of the end of September 2013. Another shareholder is Chuck Royce's Royce & Associates
, with a holding of 336,900 shares, worth $926,000 as in its latest 13F.
In the equity portfolio of Shah Capital Management, UTStarcom Holdings Corp (NASDAQ:
UTSI) represents one of the largest positions. However, the biggest one, in terms of value is represented by China Yuchai International Limited (NYSE:
CYD), in which the fund owns 2.31 million shares, with a reported value of $54.83 million.
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