Name: Huawei to sell $15 billion Honor unit to Shenzhen government, Digital China, others: Sources
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Huawei to sell $15 billion Honor unit to Shenzhen government, Digital China, others: Sources

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Search+›››› Huawei to sell $15 billion Honor unit to Shenzhen government, Digital China, others: SourcesLast Updated: Nov 10, 2020, 10:44 AM ISTSynopsisHONG KONG:plansbudget-brand smartphonein a 100 billion yuan ($15.2 billion) deala consortium led by handset distributorand the government of its home town of, people with knowledge of the matter told Reuters.The plan comes as U.S. restrictions on supplyingTechnologies Co Ltd force the world's second-biggest smartphone maker - after South Korea's Electronics Co Ltd -focus on high-end handsets and corporate-oriented business, the people said.It also indicates little expectation for any swift change in the U.S. perception ofas a security risk following a change in U.S. administration, one of the people said.The all-cash sale will include almost all assets including brand, research &amp; development capabilities and supply chain management, the people said.could announce it as early as Sunday, one of the people said.MaindistributorGroup Co Ltd will become a top-two shareholder of sold-off entityTerminal Co Ltd with a near-15% stake, said two of the people.Terminal was incorporated in April and is fully owned by, the corporate registry showed., which also partnersin businesses such as cloud computing, plansfinance the bulk of the deal with bank loans, the two people said. It will be joined by at least three investment firms backed by the government of financial and technology hub, with each owning 10%15%, they said.After the sale,plansretain most of its management team and 7,000-plus workforce and go public within three years, the people said, decliningbe identified dueconfidentiality constraints.declinedcomment.,and thegovernment did not immediately respondrequests for comment.SANCTIONSThe U.S. government last year movedprevent most U.S. companies from conducting business with- also the world's biggest telecoms equipment vendor - citing national security concerns.has repeatedly denied being a security risk.In May, Washington announced rules aimed at constricting's abilityprocure chips featuring U.S. technology for use in fifth-generation (5G) telecommunications network equipment and smartphones such as its premium P and Mate series.establishedin 2013 but the business mostly operates independently. Divestment will meanis no longer subject's U.S. sanctions, analysts said.sells smartphones through its own websites and third-party retailers inwhere it competes with Xiaomi, Oppo and Vivo in the market for lower-priced handsets. It also sells its phones in Southeast Asia and Europe.-brand smartphones made up 26% of the 51.7 million handsetsshipped in July-September, showed estimates from researcher Canalys.'s products also include laptops, tablet computers, smart TVs and electronic accessories.With margins thin for lower-end phones,booked about 6 billion yuan in net profit on revenue of around 90 billion yuan last year, said one of the people, citing audited figures. ($1 = 6.5775 Chinese yuan renminbi)Experience Your Economic Times Newspaper, The Digital Way!&nbsp;»(Catch all the , Events and Updates on .)Download to get Daily Market Updates &amp; Live Business News.Subscribe to XStories you might be interested inSUBMIT

Search+›››› Huawei to sell $15 billion Honor unit to Shenzhen government, Digital China, others: SourcesLast Updated: Nov 10, 2020, 10:44 AM ISTSynopsisHONG KONG:plansbudget-brand smartphonein a 100 billion yuan ($15.2 billion) deala consortium led by handset distributorand the government of its home town of, people with knowledge of the matter told Reuters.The plan comes as U.S. restrictions on supplyingTechnologies Co Ltd force the world's second-biggest smartphone maker - after South Korea's Electronics Co Ltd -focus on high-end handsets and corporate-oriented business, the people...

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Huawei to sell $15 billion Honor unit to Shenzhen government, Digital China, others: Sources

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