The paper manufacturer said it has received interest from a number of parties for the business, which recorded revenue of €200m (£183m) in 2008, around 10% of the group's total sales.

A far-reaching transformation plan was launched for the carbonless business in November 2008. In the UK, this included the closure of its 125-staffed Dartford mill in February 2009 following the start of a consultation process last year.

Arjowiggins said that the programme is now "well advanced and under control" and is expected to be completed by the summer.

In an email addressed to customers and passed to PrintWeek, Arjowiggins said: "We would like to inform you that our company, in agreement with Sequana, its shareholder, has made the decision to sell its carbonless paper division.

"Concurrently, interest was shown by different parties and, as a matter of fact, we have announced on 11 March that a buyout project is being discussed with an Arjowiggins senior manager, a Belgian national."

Last year, Arjowiggins was proposing to acquire M-real's carbonless paper mill, Zanders Reflex, but the deal was cancelled after weeks of speculation.

A spokesman for Sequana said that supply and demand in the market is "clearly weak these days and this business is in a structural market decline".

The carbonless paper division was loss-making in 2007 and 2008 and the decision to sell it is also due to merger of Sequana subsidiaries Arjowiggins and Antalis.

The French parent announced the "ultimate integration" of the fine and thin paper manufacturer and paper merchant in June 2008.