Dixons Retail has announced that it has entered into an agreement to sell its remaining Electroworld operations in Central Europe.
The electrials specialist, which operates out of 26 retail stores across the Czech Republic and Slovakia and lost £5.6 million for the year ending April 2014, will be sold to NAY, a fellow electrical specialist retailer in the region.
Following the completion of the sale, expected to take place during the summer, Dixons expects to receive a small deferred cash payment spread over three years.
Sebastian James, Dixons Retail CEO, commented: "I am very pleased that we have been able to secure a strong future for Electroworld who will be able to flourish as a part of the NAY Group in Central Europe.
“Following this transaction Dixons will be a market leader in every market in which it operates, delivering on one of our key strategic objectives."
Peter Zálešák and Ján Tomáš, co-founders of NAY, added: "We are pleased to announce the closure of this deal with ElectroWorld.
"It is a big step towards achieving our goal of reaching €300m of sales in Central Europe and we strongly believe it allows the development of our market leading position in Slovakia.
“Furthermore it achieves our longer-term development to enter the Czech market and we are delighted to do that in conjunction with such a good partner as Electroworld.”
Dixons previously sold its ElectroWorld operations in Turkey to electrical specialist retailer Bimeks in late 2013, in return for £2 million in cash over two years from the firm.
The retail chain also paid £21 million to offload its loss-making Italian UniEuro business and Pixmania arm at around the same time.
Dixons unveiled its plans to merge with Carphone Warehouse last week, in a deal worth £3.8 billion.