By Christian Moess Laursen

Zegona Communications confirmed it is in discussions with Vodafone Group regarding a potential acquisition of the U.K.-based telecommunications group's Spanish business, the company said Friday.

The confirmation follows a report by Spanish business newspaper Expansion that the European telecommunications-investment company is planning to buy a 50% stake in the unit, in a deal that would value the business at more than 5 billion euros ($5.33 billion).

Zegona Communications' shares have been temporarily suspended from trading on the London Stock Exchange as a result, as the deal would constitute a reverse takeover.

There is no certainty the potential acquisition will proceed nor to the terms of any such acquisition, the company said.

Vodafone didn't immediately respond to a request for comment on the Expansion article.

Write to Christian Moess Laursen at christian.moess@wsj.com

(END) Dow Jones Newswires

September 22, 2023 04:36 ET (08:36 GMT)

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