(An item published on June 30 at 0838 BST misstated the size of the Carphone Warehouse and Dixons Retail merger. The correct version follows.)
LONDON (Alliance News) - Carphone Warehouse Group PLC said Monday it has entered into a legally binding agreement to sell its joint venture with Virgin Media Inc, Virgin Mobile France, to Numericable Group SA.
Carphone has a 46% share in the joint venture, which will be sold for a total of EUR325 million, of which EUR149.5 million would be attributable to Carphone.
The sale is subject to approval from the French Competition Authority. Carphone had said in May that it was in talks for the sale.
Numericable is a French telecommunications and broadband services provider, formed in 2007 by the merger of competitors Noos and NC Numericable Networks.
The joint venture has been hampered by tough competition in the French market, seeing revenue fall 10% in the year to March 29 compared to the previous year.
At the announcement of its full-year results last Thursday, Carphone said it was clear that it Virgin Mobile France would be better served by being "part of a larger organisation".
Carphone Warehouse announced in May that it had agreed to merge with Dixons Retail in a GBP3.6 billion deal to form a new electrical goods and mobile phone retailer called Dixons Carphone PLC. The merger was cleared by the European Commission last Wednesday, and is expected to become effective August 6.
Shares in Carphone Warehouse were trading up 0.5% at 323.50 pence Monday morning.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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