Carphone Warehouse Group, UK’s independent mobile phone retailer, and entrepreneur Richard Branson’s Virgin Group have agreed to sell Virgin Mobile France , to Numericable for an enterprise value of €325m.

Virgin Mobile is France’s largest mobile virtual network operator (MVNO) with 1.5 million customers.

For the year to 31 March, the group’s profit fell to £1m from £7m while revenues decreased from £385m to £346m.

Carphone, which owns 46% of Virgin Mobile France’s holding company, Omer Telecom , entered into an exclusivity agreement with Numericable have signed a legally binding sale and purchase agreement

Meanwhile, Carphone is seeking shareholder approval for its £3.7bn merger with Dixons.

According to sources, the proceeds from Virgin sale process of around £100m were already factored into Carphone’s financials when brokering the tie-up.

This deal comes just two months after Numericable agreed a £14bn acquisition of mobile operator SFR from French conglomerate Vivendi following a protracted and bitter bid battle with rival Bouygues.

Carphone is a mobile phones and services retailing company. The company offers various products and services to its clients including mobile handsets, tablets, connected devices, quad-play package comprising mobile, fixed line, broadband and TV services, smartphones and other mobile handsets.