The PPF Group NV of billionaire Petr Kellner had agreed to purchase the controlling stake in Telefonica Czech Republic. The price of the purchase reached USD3.4 billion. This also marks the end of eight years since the Czech Republic's largest telephone company was last in local hands.

The investment firm would purchase 65.9% in Telefonica SA at CZK305.6 per share. This is a discounted price by 2.1% from the close of yesterday's trading. PPF for its part would be funded through EUR2.3 billion or USD3.1 billion syndicated loan from a banking conortium headed by Societe Generale SA.

As required by law, the investment firm is required to purchase all the remainings shares of the Czech unit except the ones retained by the Madrid headquartered Telefonica SA.

Kellner is the richest man in the Czech Republic with a net worth of nearly USD11.2 billion as reviewed by Bloomberge Billionaires Index. Through his investment, he would be able to revive an industry very much affected by intense competition back home. For Telefonica, the amount would help pay off debt.