(June 25) -- Virgin Mobile USA Inc. will buy the U.S. mobile operation controlled by South Korea's SK Telecom Co., the Financial Times reported.

The parties have agreed to a deal in principle and may make an announcement as early as this week, the newspaper said, citing an unidentified person with knowledge of the situation.

Under the terms of the agreement, SK Telecom's U.S. mobile business, called Helio, will be subsumed into Virgin Mobile USA, with the Virgin brand being retained, the newspaper said.

In return, Virgin Mobile will issue new shares, giving SK Telecom a stake of almost 20 percent of the enlarged business's equity, the Financial Times said.

SK Telecom has also agreed to invest an unspecified amount in Virgin Mobile USA, according to the newspaper.

Helio spokesman Rick Heineman and SK Telecom spokeswoman Lauren Kim declined to comment beyond reiterating previous comments that the companies are in talks about potential strategic opportunities. Virgin Mobile spokesman John McCool wasn't immediately available to comment.

(Editor: Haijing Qu)