PPF Group, owned by billionaire Petr Kellner, is expected to finalise the deal later today, with an official announcement to be made later this week.
The company will then make a tender offer for 31% of listed stock in the company, adding approximately €1 billion to the enterprise value.
It is rumoured that Telefónica has been in discussions with the group for several weeks, after it confirmed its intentions to sell the unit two months ago.
PPF Group invests in a range of sectors, from retail banking to agriculture, across central and eastern Europe, with an asset portfolio valued at €22 billion.
Telefónica is looking to sell off its non-core assets in a bid to improve its balance sheet and free up capital to invest in its core European and Latin American markets.
Earlier this year, it agreed a deal to sell its Irish business to Hutchison Whampoa.
In turn, the company has increased its stake in Telecom Italia and is in the process of finalising a deal to acquire KPN’s German subsidiary E-Plus.
The case to sell its Czech unit has been heightened after Vodafone became more aggressive in the market, in addition to regulators introducing increased competition.
