Huawei is reportedly making plans to sell its budget-brand smartphone unit, Honor to a consortium led by handset distributor Digital China and the government of Shenzhen, where it is domiciled. The deal is worth an estimated $15.2 billion.

It seems that the US restrictions against Huawei’s access to technology supplies is a major factor influencing the sale. It also appears that the company’s new focus is on high-end smartphones and other corporate-oriented business.

This perhaps signifies that the company perceives that the US administration’s policy against it won’t be changing in spite of the country being on the verge of an administration change.

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The sale is said to include brand, research & development capabilities, supply chain management, and some assets. Reuters report that Huawei could also announce the deal as early as this week, quoting an inside source.

Digital China plans to finance a majority of the deal with bank loans. However, it is collaborating with at least three investment firms backed by the government of financial and technology hub Shenzhen, with each owning 10% to 15%, per Reuters. The company has had previous businesses with Huawei, so they are quite familiar with one another.

Honor plans to retain most of its management team and its over 7,000 employees. The company also has plans to go public within three years of the deal. Neither Huawei, Honor, or any of the parties involved in the potential deal have made any statement as regards its confirmation.

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