Huawei plans to sell Honor one of its cheap smartphone brand division for 100 billion yuan (approximately US$15.2 billion), which includes Digital China Group and the local government in the brand’s hometown of Shenzhen.

Now, Reuters has released a new report that says the company is planning to sell a large number of its sub-brands to local governments and other agencies.

For those who don’t know, Huawei has obviously been considering selling its honor division because it faces various supply restrictions due to US sanctions.

It has already lost chip supply, and having a budget-oriented production line will put further pressure on the chip inventory that is already decreasing.

The report is coming at a time when there has been a change of leadership of the United States following the just concluded presidential election in which the incumbent Donald Trump lost to Joe Biden.

Although, Huawei obviously does not want any policy that is conducive to its position to be changed. In other words, even though Joe Biden has taken over the security risk accusation, the accusation may still exist.

It is said that this transaction is “all cash” and will include almost all assets, brands, research and development capabilities, and even supply chain management.

Although the news has not yet been officially announced, the source believes that the company may release this news before Sunday (November 15, 2020).

According to sources, Digital China Group will be one of the two largest shareholders of Glory, and will own nearly 15% of Glory Terminal Co., Ltd., which was previously wholly owned by Huawei.

The transaction will enable Digital China to provide most of the funds for the transaction through bank loans, and will be supplemented by at least three investment companies supported by the Shenzhen government, the financial technology center.

These companies will each hold approximately 10% to 15% of the shares.

After the transaction is completed, Honor still plans to retain most of its management and more than 7,000 employees and employees.

In addition, according to sources, it plans to go public within the next three years.

At present, Honor declined to comment on this matter, while Huawei, Digital China and the Shenzhen government have not yet responded to this matter.