Shares of NQ Mobile soar on buyout offer

Employees are seen at the stand of NQ Mobile Inc, a Chinese mobile security services provider, during PT/EXPO COMM China 2013 in Beijing, September 24, 2013. [Photo/IC]

Stocks of NQ Mobile Inc surged nearly 8 percent on Thursday after the Beijing-based mobile security company said it has received a non-binding buyout proposal from Bison Capital Holding Co Ltd.

NQ Mobile, traded on the New York Stock Exchange, said Bison has proposed a fixed cash consideration of $9.80 per share.

"The Board is reviewing the proposed transaction," the Chinese company said in a statement. "No decisions have been made by the Board with respect to its response to Bison's proposal."

The buyout offer fueled the company's price to $8.64 per share at one point in pre-market trading, up by 25 percent. Stocks of NQ Mobile closed at $7.44 on Wednesday.

NQ Mobile was a long-time target for the United States short-sellers. In last October, New York-based research firm Muddy Waters LLC accused the company of conducting a "massive fraud".

The mobile security provider denied the accusations, but could not rescue its stocks from plummeting.

NQ Mobile said its mobile security business has 481 million registered user accounts and 136 million monthly active user accounts around the world as of 2013.