Founded in 2013, Huawei’s sub-brand Honor has been offering budget handsets, tablets, and laptops in the global market, unlike Huawei that mostly targets its home market and has a more premium and expensive lineup of products. Unfortunately, Huawei is now planning to part ways with its sub-company amid the US ban restrictions.

Huawei had been looking to sell its subsidiary for a while and now new reports claim that Honor will be sold to the Digital China Group and the local government in Shenzen for $15.2 billion. The transaction will be “all cash” and will include all of the company’s assets, branding, research and development capabilities, and supply chain management as well.

Honor View 30 will have the Kirin 990 processor

The news is not official as of yet, but sources believe that Huawei will officially announce the deal by November 15. These sources have also said the Digital China Group will be among the top two shareholders of the company with a nearly 15% share in Honor which was previously entirely owned by Huawei.

Digital China will finance this acquisition through bank loans and at least three investment firms that are backed by Shenzen’s government. All these firms will hold about a 10 to 15% stake in the company. Once the deal is complete, Honor is planning to retain control over its management and 7000 employees.

Honor has declined to comment on the reports so far and so has the Digital China Group and the Shenzen government.