Jakarta, CNN Indonesia –
The sale was made to a consortium of 30 agents and dealers.
The move was taken in an effort to keep Honor alive amid United States sanctions.
The deal comes after US government sanctions have restricted supplies to Huawei on the grounds the company poses a national security threat. Huawei has denied the allegations.
Launch CNBC, the consortium stated that the purchase of Honor will be made through a new company called Shenzhen Zhixin New Information Technology. After this sale, Huawei will no longer own shares in the Honor company.
In an official statement, Huawei said it was under tremendous pressure due to the unavailability of technical elements for businesses smartphone.
Furthermore, the consortium and Huawei agreed that the change in ownership would not affect Honor’s development direction.
Sources familiar with the matter said US government restrictions had forced the maker smartphone second largest in the world, after South Korea’s Samsung Electronics it was to focus on high-end handsets.
One source said the US government would have no reason to impose sanctions on Honor after splitting from Huawei.
Launch Tech Crunch, no one in the consortium poses a threat to Huawei’s market position. So, it leaves enough leeway for Huawei if it wants to buy back Honor from the government-supported consortium.
One member of the consortium is the Shenzhen Smart City Technology Development Group, an organization supported by the Chinese government to promote cloud, 5G, technology. smart city among other state companies.
There is also China Postal and Telecommunications Appliances, a distribution provider for state-owned telecommunications products and electronic distributors such as Suning and Sundan.
Not yet known for sure the sales value of Honor. However, a number of parties predict that Honor will be sold at a price of US $ 15 billion or Rp.211 trillion.
Honor sells smartphone through its own website and third-party retailers in China. Honor competes with Xiaomi, Oppo and Vivo in the lower priced handset market. Honor also sells phones in Southeast Asia and Europe, and ships 70 million units annually, according to a Huawei statement.
Previously, the discourse to sell Honor also surfaced when Huawei was going to buy a Qualcomm chipset. The purchase of chipsets was made because Huawei could no longer make its own chipsets due to US sanctions.
Qualcomm has reportedly obtained permission to supply chipsets to Huawei. Qualcomm is predicted to meet Huawei’s demand on the condition that the company sells its Honor subsidiary. This is because Qualcomm’s production capacity is unable to accommodate requests from Huawei and Honor at the same time.
(jps / eks)