ALAMEDA, Calif.—UTStarcom Inc. said Monday it has completed its sale of the telecommunications company's cell-phone distribution division to a unit of AIG Investments for about $240 million.
In a regulatory filing Monday, UTStarcom said $24.3 million of the price is subject to escrow, and the amount may be subject to an adjustment. UTStarcom could also be paid up to $50 million more in 2011 based on the earnings of the division.
Philip Christopher, the former president of the personal communications division, will be paid $1.5 million for termination of his employment related to the sale.
UTStarcom will also pay a $52,221 life insurance premium for Christopher's benefit.
UTStarcom has been selling off units to focus on making Internet TV set-top boxes, particularly for the Chinese and Indian markets, where cable TV service is less common than in the U.S.
Shares of UTStarcom stock rose 47 cents, or 10.22 percent, to $5.07 Monday, before dropping 18 cents, or 3.55 percent, to $4.89 in after-hours trading.
