(Telecompaper) Telefonica has agreed to sell a majority stake in Telefonica Czech Republic to the private equity firm PPF. For the 65.9 percent stake, which includes also Telefonica Slovakia, PPF will pay EUR 2.467 billion (CZK 63.6 billion). This includes an initial payment of EUR 2.063 billion and EUR 404 million over the next four years. Telefonica will also receive a dividend of EUR 260 million from the Czech operator before the deal closes and maintain a 4.9 percent equity stake in the company. As part of an industrial and commercial partnership with the new owner, Telefonica Czech Republic will be renamed but continue to have rights to the O2 brand for four years. In addition, the company will become part of Telefonica's Business Partners Program. Telefonica said it will use the proceeds of the sale to reduce debt and realise a capital loss of EUR 56 million on the transation in Q3.