NQ Mobile Inc. (NYSE: NQ) said it has entered into a legally binding framework agreement with Beijing Jinxing Rongda Investment Management Co. Ltd., a subsidiary of Tsinghua Holdings Co., Ltd and an independent third party, to sell the company´s entire stake in FL Mobile Inc., NQ Mobile´s majority owned Cayman Islands subsidiary.
Pursuant to the FL Framework Agreement, the company, along with the other existing shareholders of FL Mobile Inc., have agreed to sell to Beijing Jinxing the entire stake in FL Mobile Inc. that they currently hold for no less than RMB4 billion (or approximately no less than USD626 million), with the final price being subject to the valuation of an independent third party valuer.
After evaluating the benefits of this transaction to the company and its shareholders, NQ´s board of directors approved the FL Framework Agreement and the FL Divestment. The Existing FL Shareholders and Beijing Jinxing agreed to an exclusivity period of 180 days and the Existing FL Shareholders agreed to terminate any ongoing discussions regarding any other contemplated transactions involving FL Mobile Inc., including those between NQ Mobile and Tack Fiori International Group Limited, within 10 days of entering the FL Framework Agreement.
However, the company and Tack Fiori continue to explore other strategic opportunities and alternatives to cooperate. The completion of the contemplated FL Divestment is subject to negotiations among the parties regarding the detailed deal structure, the signing of a definitive purchase agreement and the fulfilling of certain customary closing conditions contained therein.
NQ Mobile is a leading global provider of consumer and enterprise mobile Internet services. NQ Mobile´s portfolio of offerings includes mobile security and productivity, mobile search, mobile games & advertising applications for the consumer market and consulting, mobile platforms, and mobility management services for the enterprise market. NQ Mobile maintains dual headquarters in Dallas, Texas, USA and Beijing, China.
Related Articles