Huawei Technologies is considering selling off a majority stake in its mobile-devices division, a deal that could be worth $4 billion, according to some news reports. Huawei is China’s biggest telecom network equipment maker and its mobile devices division produces handsets, data cards, DSL modem and home gateways, convergence terminals and video products.
Bloomberg reported sources saying that the company has sent out first round bidding invitations to private-equity firms including Bain Capital, Blackstone Group, TPG, Kohlberg Kravis Roberts & Co., the Carlyle Group and more. The bidders have until June 23rd to submit nonbonding offers.
Dow Jones Newswires reported sources saying that the sale of a controlling stake in the mobile devices unit could help the company break into the U.S. market. And that when Huawei confirmed the possible sale, it called the decision in line with the company’s “globalization efforts” and that its hopes a sale “will enhance the future development of this product group.”
The reports say that Huawei plans to sell at least 49% of the mobile device business, although the size of the stake will depend on the submitted bids.