Zegona Communications Plc, an acquisition vehicle, is in talks with Vodafone Group Plc about a potential acquisition of the UK-based telecom giant’s Spanish unit.

The group is also in talks with banks about financing, the company said in a statement on Friday following media reports about a potential deal. The companies haven’t agreed to final terms and a deal may not necessarily result from the negotiations, it said.

Private equity firms have also expressed interest in the Spanish unit, people familiar with the matter have said.

Zegona has been an active player in the Spanish telecoms market. Founded in 2015 and run by former Virgin Media executive Eamonn O’Hare, the company previously sold Spanish operator Euskaltel to Masmovil Ibercom SA. Masmovil since agreed a merger with Orange SA in the Spanish market, which is pending EU approval.

Vodafone shares rose 1.2% to 81.99 pence at 9:09 a.m. in London.