Huawei is in talks with Digital China Group and other suitors to sell parts of its Honor smartphone unit in a deal that could fetch up to RMB 25 billion ($3.7 billion), sources with knowledge of the matter said, reported Reuters.
Embattled Huawei is resetting its priorities due to US sanctions and will focus on its higher-end Huawei phones rather than the Honor brand which is aimed at young people and the budget conscious, they said.
The assets to be sold have yet to be finalized but could include Honor’s brand, research & development capabilities and related supply chain management business, two of the sources said, reported Reuters.
The deal may be an all-cash sale and could end up smaller, worth somewhere between RMB 15 billion and RMB 25 billion, one of the sources said.
