Huawei closed in on a deal to sell the assets related to its youth-focused device range Honor to a group led by handset distributor Digital China and the Shenzhen government for CNY100 billion ($15.1 billion), Reuters reported,
The deal, which could be announced by Sunday, reportedly will cover the Honor brand, R&D capabilities and supply chain management.
Digital China, a distributor of Honor devices, would take nearly a 15 per cent stake following the sale, with at least three investment companies backed by the Shenzhen government each owning a 10 per cent to 15 per cent interest, Reuters said.
Huawei declined to comment on the report.
The news agency in mid-October reported the Chinese mobile giant opened talks [1] with several companies about offloading the Honor assets.
The sale reportedly is an attempt to refocus its smartphone business on higher-end models currently supplied under its core Huawei brand. While the new Chinese owners would not be subject to a ban imposed on Huawei [2] by the US on sourcing some components, they would likely still be caught-up in the ongoing technology trade war [3].
Faced with new US trade sanctions, Huawei’s global smartphone shipments in Q3 declined 23 per cent year-on-year to 51.7 million, with Honor models accounting for about a quarter of the total, data from Canalys showed.
[1] https://www.mobileworldlive.com/devices/news-devices/huawei-mulls-honor-sub-brand-asset-sale
[2] https://www.mobileworldlive.com/featured-content/home-banner/us-clamps-down-on-huawei
[3] https://www.mobileworldlive.com/asia/asia-news/smic-warns-of-material-impact-from-us-sanctions
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