PRAGUE (AP) — Czech investment firm PPF Group says it has agreed to buy the Czech telecoms branch of Spain's Telefonica in a deal valued at 63.6 billion koruna ($3.3 billion).

PPF Group says it will acquire a 65.9 percent stake of Telefonica O2 Czech Republic, which is the country's biggest telecoms operator with 5.1 million customers among a population of 10 million.

Under the terms of the deal announced by PPF Group Tuesday, Telefonica will retain a minority 4.9 percent share.

The deal is subject to approval by the European Commission.

The new owner is entitled to use the O2 brand name for another four years.