Beleagured UK headquartered grocery giant Tesco is preparing to sell its mobile phone business.

According to reports in the Financial Times, the chain has held discussions with bankers to sell the  mobile business, part of an ongoing plan to divest non-core assets and reduce debt levels.

Tesco’s share of mobile profits totals about £100 million annually, meaning the company could be worth several hundred million pounds.

The leading likely bidder, according to UK news media, is TalkTalk, which bought Tesco’s TV service Blinkbox last year. Mobile network O2 is also reportedly interested.

In a separate move, the company is preparing to sack its auditor PwC after a 32 year long business relationship, in the wake of the £263 million accounting scandal last year.

PwC alleges former Tesco executives hid the true nature of Tesco’s financial position from the auditing team and that it was not to blame for not discovering the shortfall.