Carphone Warehouse, Europe's biggest independent mobile phone retailer, said it and the other shareholders of the Virgin Mobile business in France have agreed to sell the venture to Numericable Group for an enterprise value of €325m.
Carphone owns 46% of Virgin Mobile France's holding company Omer Telecom Limited.
It said it and the other shareholders had entered into an exclusivity agreement with Numericable regarding the proposed sale.
"During the exclusivity period the parties will carry out the necessary consultations with employee work councils, with the transaction also being subject to the approval of the French Competition Authority," Carphone said.
Carphone and Dixons Retail, Europe's second biggest electricals retailer, yesterday announced plans for an all-share merger.