Cayman gains US telecoms company from Delaware

(Bloomberg): Telecommunications company UTStarcom Inc. said Monday it plans to change its place of incorporation from Delaware to the Cayman Islands as part of a reorganization.Many companies incorporate in offshore financial centers in the Caribbean and elsewhere, drawn by low tax rates and banking rules and legal systems that make it easy to move capital around the globe. UTStarcom is merging with a newly formed unit to become a subsidiary of a Cayman Islands holding company, UTStarcom Cayman.

If shareholders approve the deal, their UTStarcom shares will convert into shares of UTStarcom Cayman, which will be listed on Nasdaq. The company’s business operations won’t change.
UTStarcom Cayman will be taxed as a United States corporation. It expects to qualify as a foreign private issuer for purposes of its reporting obligations to the Securities and Exchange Commission, which the company expects will lower its compliance costs.

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