Huawei to sell $15 billion Honor unit: report

China's telecom giant Huawei Technologies Co Ltd plans to sell its budget-brand smartphone unit Honor in a 100-billion-yuan ($15.2 billion) deal to a consortium of tech companies, media reports said on Tuesday.

The acquirer group includes handset distributor Digital China Co Ltd, three state-owned entities and smart home appliance maker TCL, China's tech media 36Kr reported, citing people familiar with the matter.

"The management of Honor will hold shares in the deal," 36 Kr quoted sources, adding that some of the executives will take positions in the core management and the firm would undergo a reorganization.

Reuters also reported the deal, saying the plan comes as U.S. restrictions on supplying Huawei force the world's second-biggest smartphone maker to focus on high-end handsets and corporate-oriented business.

Divestment will mean Honor is no longer subject to Huawei's U.S. sanctions, analysts said.

Main Honor distributor Digital China will become a top-two shareholder of sold-off entity Honor Terminal Co Ltd with a near-15 percent stake, the sources said, adding that the deal will include the sale of almost all assets including brand, research and development capabilities and supply chain management.

As of the time of writing, CGTN has received no response from Huawei on the matter.

Honor was launched by Huawei in 2013. In April, Honor Terminal was incorporated as an independent company fully owned by Huawei, the corporate registry showed.

Honor sells smartphones through its own websites and third-party retailers in China where it competes with Xiaomi, Oppo and Vivo in the market for lower-priced handsets. It also sells its phones in Southeast Asia and Europe.

Honor-brand smartphones made up 26 percent of the 51.7 million handsets Huawei shipped in July-September, according to estimates from researcher Canalys.

(Cover via CFP)