TELEFONICA has agreed to sell its Czech business in a deal worth almost €2.5 billion.

It is the latest in a raft of recently-completed deals aimed at reducing the telecoms company´s debt pile.

Telefonica, which is Spain´s largest telecoms provider, is also looking to focus on other markets, including Brazil and Italy.

It is particularly keen to bid on TIM Brasil, a subsidiary of Italian telecoms company Telecom Italia Media.

The Czech business, which contributed around 3% of the company´s total revenue is to be sold to investment group PPF, owned by the Czech Republic´s richest man Petr Kellner.