Last updated on December 8th, 2022 at 02:34 pm
Cash sale will include nearly all assets including brand, research and development capabilities, and supply chain management
The authoritative edition of Reuters, referring to trusted informants, published new information about the sale of the Honor brand by Huawei .
The new owners of Honor have been announced. Huawei will receive over $ 15 billion
Huawei plans to sell the Honor brand for $ 15.2 billion to a consortium led by handset distributor Digital China and the Shenzhen city government, the source said. Huawei was forced to take this step by US sanctions on the supply of components. Huawei itself plans to focus on premium smartphones and corporate business.
The move also confirms that Huawei does not expect a quick change in its relationship with the company following the change of US administration, one source noted. The cash sale will include nearly all assets, including brand, research and development capabilities, and supply chain management. Huawei may announce this as early as Sunday 15 November.
Honor’s main distributor, Digital China Group, will become one of the two largest shareholders in the sold Honor Terminal Co Ltd, with a stake of almost 15%. The corporate register revealed that Honor Terminal was registered in April and is wholly owned by Huawei.
Digital China Group, which is also a partner of Huawei in areas such as cloud computing, plans to fund most of the deal with bank loans. At least three investment companies backed by the government of Shenzhen’s financial and technology center will join Digital China Group, they said, each holding between 10% and 15%.
After the sale, Honor plans to retain most of its management team and over 7,000 employees and go public within three years.
Honor, Huawei, Digital China and the Shenzhen government have not yet commented on the information.
