Talks are reportedly underway between mobile network operator Vodafone and investment group Zegona regarding the sale of Vodafone’s Spanish arm, new reports have suggested. The news emerged from Spanish newspaper Expansion and has been echoed by big names in the industry such as Bloomberg and Reuters.

As reported, Zegona is actively seeking necessary financing to purchase Vodafone’s operations in Spain. The potential acquisition could give the entire Spanish entity a valuation exceeding €5 billion. However, it’s important to note that Zegona might only be able to buy a 50% stake. In addition to Zegona, a few private equity firms have also shown an interest in Vodafone’s Spanish operations, according to insights from Bloomberg.

For those unfamiliar with Zegona, their business approach, as stated on their official website, is primarily focused on investing in the European TMT (Technology, Media, and Telecom) sector. Their goal is to boost performance and provide enticing returns to shareholders by utilizing a ‘Buy-Fix-Sell’ strategy.

Earlier this year in June, confidential sources informed Expansion that Vodafone had sought the expertise of various external advisors, such as Morgan Stanley and Garrigues. This was reportedly done to assist Vodafone in deciding whether to sell its Spanish segment, and discussions were held with several funds, including Apollo Global Management and Apax Partners.

At the time, Vodafone Spain’s worth was estimated at about €3.9 billion. This figure was significantly lower than an earlier offer from MasMovil for the company. Revealingly, there were merger talks in March 2021 between these firms that could have valued Vodafone Spain at as much as €7.5 billion. Although these discussions never reached a conclusion, it serves to showcase the fluctuating price range during this on-going consideration.