According to Reuters, Huawei may have found a destination for Honor, its main sub-brand of mobile phones. The Chinese giant has been looking for a new home for its subsidiary since last month and, according to the news agency, a group of investors wants to acquire the firm for $ 15.2 billion.
The group that can buy Honor is a consortium led by technology company Digital China and the government of Shenzhen, Huawei’s hometown. The acquisition price is considerably higher than the initial projections, which predicted a sale of around US $ 3.7 billion.
According to Reuters, the agreement allows Honor to maintain its research and development brand and infrastructure, as well as a distribution line and a workforce of more than 7,000 employees. That is, the company should continue to operate as it currently does, but without sharing technologies with Huawei.
After the sale, Honor is said to continue to operate in the market independently. Digital China and the Shenzhen government will be the company’s largest shareholders, with a share of approximately 15% of the business each. In addition, according to Reuters sources, the company plans to carry out a public offering within three years.
The sale of Honor is another step by Huawei to keep its business alive after sanctions imposed by the United States government. According to Reuters, the Chinese giant has been preparing to sell its sub-brand since April, when it started to make the company more independent.
To date, Huawei has not officially commented on the matter and details about the possible sale of Honor have yet to be confirmed.