As a follow-up to reports of Huawei planning to offload HONOR’s smartphone business last month, a new exclusive report from Reuters reveals that Huawei will sell HONOR’s smartphone division for CNY 100 Billion (~$15 Billion) to handset distributor Digital China and the Shenzhen government.
The move is part of Huawei’s plans following the implementation of the US Trade Ban. Offloading HONOR’s smartphone division would mean that Huawei will focus instead on high-end phones and corporate businesses.
According to Reuter’s sources, the sale “will include almost all assets including brand, research & development capabilities and supply chain management,” and that Huawei is expected to announce the sale on November 15. With the sale, Digital China will become a top-two shareholder at Honor Terminal, which was incorporated in April this year and is fully owned by Huawei, with a near 15% stake.
Digital China plans to finance the sale with bank loans and intends to absorb most of HONOR’s management team and 7,000-plus employees. in addition, Digital China plans to go public with HONOR within three years. All parties involved declined to comment on the matter.