I saw the announcement from a Chinese portal days ago. It's a surprised move. My reading is the management gives the top institution holders last chance to unload their shares under a face-keep price. I speculate the management doing this for 1 or more followings:
1) Lu pushes the management to do it. Lu knows some of the institutes well. These institutes who have been sticking with UTSI lost their shirts and underwears, mainly due to his fault. He feel obligated to do it.
2) One or more institute shareholders threaten lawsuits for mismanagement and/or move the cash around. The management gives the holder(s) a way out.
3) The management has a stinky plan moving the cash around, worse than divestuture of the IPTV business. Having these big institutional investors from U.S. is a trouble. The management basically buys them out with a little cash.
The size of buyout is obviously target couple big holders only. This is why the price around $.9/share after announcement. I guess that remaining announced share buyback will be cancelled after this buyout. We will see.