NQ Mobile To Sell Minority Interest In Its Subsidiary, NationSky

(RTTNews) - NQ Mobile Inc. (NQ) announced that it has entered into a definitive agreement to sell a minority interest in its wholly owned subsidiary, Beijing NationSky Network Technology, Inc.

Specifically, NQ Mobile has signed a definitive agreement to sell 3.40% of NationSky for $18 million, at a pre-money valuation of $500 million or post-money valuation of $530 million, to Beijing Guorun Qilian Venture Capital Center.

In addition, NQ Mobile said it intends to sell up to 2.30% of NationSky for $12 million to other investors within the next two months. The funds will be used for research and development, marketing, working capital activities and the expansion of NationSky's core operations.

The company said the investors have a right to demand the redemption of their shares if NationSky does not complete a qualified initial public offering, or find a third party buyer to acquire all or part of its shares for a valuation of at least $550 million for NationSky's business within 24 months after the investment is completed.