Exclusive-Huawei's new smart car firm valued up to $35 billion amid advanced stake talks -sources
By Julie Zhu and Zhuzhu Cui
HONG KONG/SHANGHAI (Reuters) — Huawei Technologies' new smart car software and components firm is set for a valuation of up to 250 billion yuan ($34.67 billion) after it sells stakes to investors including Changan Auto, three people with knowledge of the matter said.
The Chinese company said on Sunday it will spin off its four-year-old Intelligent Automotive Solution (IAS) business unit — which aimed to become the equivalent of German automotive supplier Bosch of the intelligent electric vehicle (EV) era — into a new company which will receive the unit's core technologies and resources.
Main auto partner Chongqing Changan Automobile and relevant parties will own up to 40% of the new firm, a Changan Auto statement showed on Sunday. Neither Changan Auto nor Huawei disclosed financial details.
Changan Auto and its ultimate parent, state-owned China Ordnance Equipment Group — also known as China South Industries Group — are considering acquiring about 35% and 5% respectively of the new firm, which could be valued at 200 billion to 250 billion yuan, two of the people said.
Potential minority shareholders include state-owned automakers FAW Group and Dongfeng Motor Group, which are also in advanced talks with Huawei to acquire up to 5% each, said the three people.
Huawei will likely remain the single largest shareholder with 40% to 50% for at least the next two-to-three years, said two of the people.
Deal details — notably the ownership split and valuation — have not been finalised and are subject to change, the three people said. The transaction will also be subject to regulatory approval, said one of the people as well as a fourth person with knowledge of the matter.
The people declined to be
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