It seems that Huawei has so little hope that the arrival of Biden to power in the US will change the situation of the brand with respect to Google services that it is already thinking of selling Honor to “save” this “sub-brand.” And there is already an offer on the table.
According to the latest data, Huawei plans to sell its brand of budget phones for a final amount of 100 billion yuan ( approximately 13,000 million euros ). Digital China Group and the local government of the brand’s hometown, Shenzhen, participate in this purchase “package”.
Digital China Group, until now, was only a potential buyer of the second brand of the Chinese tech giant. Now, according to Reuters , Huawei plans to sell its second firm for a large sum of money to get around various supply constraints due to US sanctions. Recall that, like the parent company, Huawei has lost its supply of chips. and the possibility of using Google services on their phones.
The only salvation for Honor?
Huawei has actively and passively affirmed that, regardless of Trump’s departure from the US government, the brand is going to follow its own path and bet on its own operating system in a royal way. However, it seems that with Honor things are a little different and the sale of the brand could be the way to avoid the accusations of security risk that could still persist despite Joe Biden taking over control of the White House. .
While this sale has yet to be officially announced, Reuters indicates that the company could reveal this news before Sunday. In this way, Digital China Group will become one of Honor’s main shareholders with a stake of close to 15 percent in Honor Terminal Co Ltd, which was previously fully owned by Huawei. The transaction will see Digital China finance most of the deal through bank loans, which will be complemented by at least three investment firms backed by the Shenzhen government. Each of these companies would have between 10 and 15 percent of the shares.
After the deal is signed, Honor still plans to retain most of its management, and even go public in the next three years.
At the moment, neither Honor , nor Huawei, nor Digital China, nor the Shenzhen government have made statements.
Source>XDA Developers