Huawei to sell Honor brand for $15 bln - sources

Huawei is set to sell its budget smartphone brand Honor, according to Reuters sources.

They say the unit will be acquired by a consortium led by handset distributor Digital China, and the government of its home town of Shenzhen.

The deal is reportedly valued at 15.2 billion dollars.

It comes as U.S. restrictions on supplying Huawei force it to concentrate on its high-end handsets.

The sources say it also indicates that the firm doesn’t expect any big change in that policy from a new U.S. administration.

The all-cash sale could be announced as soon as Sunday (November 15), according to the sources.

Digital China will reportedly finance the bulk of the deal with bank loans.

The intention then is for Honor to go public within three years.

There was no comment on the report from Digital China or any of the other players.

Huawei established Honor in 2013 as a mostly independent unit.

Divestment will mean it is no longer subject to the U.S. sanctions.

Industry analysts say Honor accounted for just over a quarter of the handsets that Huawei shipped between July and September.

Its phones are sold in China, Southeast Asia and Europe.

It rivals fellow Chinese brands like Xiaomi and Oppo in the market for budget handsets.