(Yicai Global) Nov. 10 -- Huawei Technologies plans to sell Honor, the Chinese telecom giant’s budget mobile phone brand, for about CNY100 billion (USD15.1 billion), according to media outlet 36kr.

The sale price is based on Honor’s CNY6 billion (USD907 million) profit last year and a price-to-earnings ratio of 16 times, the report said today. The buyers include Digital China Group, three state-backed entities, and minority stakeholders such as TCL Technology Group.

“In this deal, the shares are relatively evenly held, with the largest number of taken by Digital China Group,” a source told 36Kr.

The sale will usher in a major restructuring of the business, and 8,000 employees will move from Huawei’s Shenzhen headquarters to an office in Meili in the same city, another source said.

Wan Biao, chief operating officer of Huawei Consumer Business Group, will join Honor and He Gang, former president of Huawei Consumer Business Mobile Phone Product Line, will replace Wan, the report said. Yu Chengdong, chief executive of Huawei’s consumer business, will not join Honor.

Huawei introduced the lower-priced Honor brand in 2013, which helped build the firm’s market share among budget-conscious buyers. Huawei made it an  independent business in April.

With the help of Honor, Huawei shipped 238.5 million phones last year, surpassing Apple to rank second globally, according to Counterpoint Research.

Editor: Tom Litting