Mobile Internet services provider NQ Mobile Inc. (NYSE: NQ) board has approved the termination of the previously announced plan to divest 100 percent of the equity interest in Beijing Tianya Co., Ltd., a wholly owned subsidiary of Beijing NQ Technology Co., Ltd., to Tack Fiori International Group Limited, the company said.
Beijing Tianya currently operates NQ Mobile´s mobile health applications related business.
The divestment was terminated upon mutual agreement between NQ Mobile and Tack Fiori. In the course of reviewing the draft announcement, The Stock Exchange of Honk Kong Limited took the view that the divestment would constitute a reverse takeover and would be treated as if it were a new listing application. In view of the tremendous cost and time expected to be incurred for complying with such expanded listing requirements, both NQ Mobile and Tack Fiori considered that it is beneficial to terminate the proposed divestment and relevant agreements.
NQ Mobile provides consumer and enterprise mobile Internet services.
