Carphone Warehouse and other shareholders have confirmed they are in talks to sell its Virgin Mobile France business to the French cable unit of Altice, Numericable Group.
The deal could be worth 325 million euros or about £265m.
Earlier this week, Carphone announced plans to merge with British electricals giant Dixons.
Carphone Warehouse Group, which owns 46 per cent of Virgin Mobile France’s holding company Omer Telecom Limited, said it had entered into an exclusivity agreement in respect of the proposed sale with Numericable Group.
In a statement, Carphone said: “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.”