The PPF investment group, controlled by billionaire Petr Kellner, is on the verge of acquiring Telefonica’s Czech operations for around €2.5 billion, according to Financial Times (FT).

The deal, say FT sources, might be finalised today (4 November) followed by an official announcement early this week.

PPF is expected to launch a tender offer for the remaining 31 per cent listed on the Czech stock exchange to take the company private.

Talks between debt-laden Telefonica and PPF have been rumoured for some time as the Spanish giant seeks to unload what it sees as non-core assets and focus on Europe’s main markets.

Telefonica has already signed an agreement with Hutchison to sell its Irish mobile operation, while increasing its stake in a group that controls Telecom Italia.

The Spanish operator is also in the process of buying E-Plus, KPN’s German unit.

Telefonica’s current net debt stands at around €48.6 billion. It aims to push it below €47 billion by the end of the year.

The acquisition of Telefonica’s Czech operations will give Kellner route into the country’s 4G market. PPF had previously ruled out bidding in the country’s upcoming 4G auction, saying it opposed certain conditions imposed by the regulator.

As of end-June 2013, according to figures from GSMA Intelligence, T-Mobile had 5.5 million subscribers in the Czech Republic, followed by Telefonica’s Czech business (just over 5 million).

Vodafone occupies third position with 3.3 million subscribers.