NQ Mobile agrees to sell FL Mobile

Mobile Internet services provider NQ Mobile Inc. (NYSE: NQ) has entered into a non-binding letter of intent with an investor group consisting of Dr. Vincent Wenyong Shi, the chairman and chief operating officer of the company, and a private equity investment fund, the company said.

The investor group will invest USD 100m in the company by subscribing to class A common shares issued by the company at the price of USUSD 1.05 per share, or USUSD 5.25 per ADS.

The completion of the proposed transaction pursuant to the letter is subject to negotiations among the parties regarding the detailed deal structure, the signing of definitive agreements and the fulfilling of customary closing conditions contained therein.

The company will sell all of its equity interests in FL Mobile Jiutian Technology Co., Ltd. (“FL Mobile”) to the investor group to complete the FL Mobile Divestment.

The company will also sell a live social video business to the investor group.

The private equity investment fund paid a deposit of HKD 50m to the company, and the parties will negotiate the terms of the transaction exclusively for 20 business days from the date of the letter. .

NQ Mobile provides mobile Internet services. Its portfolio of offerings includes mobile game publishing platforms, mobile advertising platforms, mobile entertainment applications and platforms, mobile security and productivity applications and other mobile applications.