Zegona Communications PLC on Friday said it was in discussions with Vodafone Group PLC to acquire its Spanish operations, confirming prior media reports.

The London-based company focused on communications and entertainment opportunities said it was also in discussions with banks in relation to its financing.

Zegona said the deal remains subject to agreement on final terms with Vodafone, completion of its due diligence and formalisation of funding arrangements.

As a result, it stressed that there is ‘no certainty’ that the potential acquisition will go ahead, nor as to any of the final terms if a deal were to be struck.

Zegona shares have been suspended, effective Friday, as the deal with Vodafone’s Spanish arm would represent a reverse takeover. Zegona said it would make a further announcement on this ‘as and when appropriate’.

Shares in Vodafone were up 1.0% to 81.90 pence each in London on Friday afternoon.

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