UTStarcom to change CEOs, move HQ to Beijing
Written on February 4, 2010
Telecoms gear maker UTStarcom Inc. will change CEOs and move its head office to Beijing after getting a $48.5 million investment.
The Alameda company (NASDAQ: UTSI) will get $25 million from Beijing E-town International Investment and Development Co., a firm set up by the city of Beijing, and $23.5 million from two unrelated funds — Ram Max Group Ltd. and Shah Capital Management. UTStarcom expects the deal to close by the end of March.
When the deal closes, Baichuan Du, a former deputy chief engineer of China’s state administration of radio, film and television, will take a seat on UTStarcom’s board of directors. Xiaoping Li of Beijing E-town and William Wong of Yellowstone Capital, which advised the three investors, will also take seats on the board. Allen Lenzmeier and Jeff Clarke will quit UTStarcom’s board at that time.
Jack Lu will replace current CEO Peter Blackmore as president and CEO by June 30 or three months after the deal closes, whichever is later. He’ll be chief operations officer from the time the deal closes until he becomes CEO. His most recent job was co-chief operating officer and general manager, China, at Source Photonics.
UTStarcom will move its head office to Beijing as part of a deal with the Beijing Development Area, from which it hopes to get tax incentives and other financial help. It will keep its factories in Hangzhou and Shenzhen.
Thomas Toy is chairman of the board at UTStarcom.
Filed in: economics.