What: Shares of NQ Mobile (NYSE:NQ) popped briefly this morning, opening the trading day with 12% gains only to give some back. As of 11:48 a.m. ET, shares were up just 5%, after the company announced a divestment agreement.

So what: For nearly a year, NQ has been attempting to divest its majority owned Cayman Islands subsidiary FL Mobile, but ran into some roadblocks along the way. NQ has now reached a definitive agreement with Shenzhen Prince New Materials Co., Ltd. To sell its entire stake in FL Mobile to Shenzhen Prince.

Now what: Shenzhen Prince will acquire NQ's 65% equity interest in FL Mobile for approximately 3.2 billion yuan ($500 million). Shenzhen Prince will acquire the remaining equity interests held by other affiliates and executives of NQ. The total deal values FL Mobile at 5 billion yuan ($767 million).

Image source: NQ Mobile.

Shenzhen Prince is funding the deal with equity financing, and it has also entered into share subscription agreements with investors. NQ will receive 95% of the cash consideration within 10 days of closing, bolstering its balance sheet.