Huawei plans to sell its budget smartphone band Honor for CNY 100 billion (USD 15.2 billion) to a consortium led by distributor Digital China and the government of its home town of Shenzhen, people with knowledge of the matter told Reuters. The all-cash sale will include almost all assets including the brand, research and development capabilities, and supply chain management, the report said.
Huawei could announce the deal as early as 15 November, one source told the news agency. Digital China Group would be the largest shareholder, with nearly 15 percent of Honor's shares. It would finance the bulk of the deal with bank loans, two people said. It will be joined by at least three investment firms backed by the government of Shenzhen, with each owning 10-15 percent.
After the sale, Honor plans to retain most of its management team and 7,000-plus workforce and go public within three years, according to the report. A separation from Honor could make it easier for the company to avoid US sanctions, as well as strengthen its market share in China.
