Investment company Zegona Communications confirmed it is in discussions with Vodafone Group on a potential acquisition of the operator’s Spanish business, following media speculation on the issue.

In a statement, Zegona revealed it has also been in contact with investment banks regarding financing for a potential deal.

Any acquisition remains subject to final agreement with Vodafone, due diligence and formalisation of funding arrangements, the company said, cautioning talks may not lead to a transaction.

Zegona did not disclose the potential value of any deal.

The UK-based investment company is run by Virgin Media veteran Eamonn O’Hare and has a history in the Spanish telecoms market, having been a major shareholder of Euskaltel prior to its sale to Masmovil in 2021.

Zegona’s confirmation of talks came after newspaper Expansion reported the investor was interested in acquiring Vodafone’s Spanish unit, which has been the subject of a group-level strategic review and much media speculation on its future.

Across a number of years Vodafone executives have cited high levels of competition in the Spanish market, and the company was rumoured to have hired financial bank Morgan Stanley earlier this year to help it explore options for the unit.

Bloomberg reported other investors linked with a potential acquisition include Apollo Global Management, Warburg Pincus and Carlyle Group.