Huawei to sell $15 billion Honor share to consortium led by Digital China
Last month there were speculations that Huawei is looking to sell part of its Honor sub-brand. The main reasoning behind the deal is to circumvent the multiple trade bans enforced by the US government. As per the latest Reuters report, Huawei is looking to sell off a $15 billion share of Honor to a consortium led by the Shenzhen government and IT service supplier Digital China.
Previous reports speculated the deal to be in the $2.2 billion – $3.7 billion range. The new figures were disclosed by unnamed sources who claim the deal will be finalized as soon as this Sunday. Huawei will offload nearly all of its Honor assets including brand ownership, R&D and supply chain management. Several investment firms are also expected to join in on the deal.
The upcoming Honor deal also showcases that despite the imminent change in US administration, Huawei is not expecting a favorable outcome to its current legal battles.