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 until the potential takeover is completed.

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 when contacted by Dow Jones Newswires.

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(END) Dow Jones Newswires

09-22-23 0724ET