Nokia announced that it has entered into a put option to sell Alcatel Submarine Networks (ASN)—a leading submarine networks business that it acquired via its prior acquisition of Alcatel-Lucent—to the French State, represented by the Agence des participations de l’Etat (APE).

Per a press release, the company’s website and multiple media reports, ASN is being divested by Nokia as the Finnish business considers it a non-core business. The transaction could happen as soon as the end of this year, subject to customary required approvals.

Based in Nozay, Ile-de-France, France, ASN is one of the world’s largest manufacturers of submarine cable. Its cable manufacturing plant is located in Calais, France. The company notes that it has an installed base of more than 800,000 km of optical submarine systems deployed worldwide.

“This is an incredibly exciting moment for ASN as we undertake the next phase of our development,” said ASN President and CEO Alain Biston. “The French State’s ownership gives us a stable platform to further develop our vertically integrated technology offering. This, combined with Nokia’s retained stake, underscores all parties’ aligned interests in delivering a smooth transition for the benefit of our customers, suppliers and other stakeholders.”

The deal calls for Nokia to retain 20% ownership in the company that would be maintained until a “targeted exit” to make sure that there is a smooth transition. The selling price was tagged at €350 million, although one report said that once company debt was factored in, the net would be about €100 million.

“The proposed sale of ASN to the French State is the result of extensive discussions which concluded that the French State is the most relevant custodian of ASN,” Nokia said in a statement. “The French State, as a stable owner with a long-term interest in the operation and maintenance of critical infrastructure, ensures continuity for ASN customers, employees and partners.”

ASN’s history traces back to the creation of the Submarine Telegraph Company (STC) in 1858. Alcatel Cable acquired STC in 1993, and in 1994 it regrouped submarine activities to Alcatel Submarine Networks, owning 51%. In 2015, ASN became part of Nokia.