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Shares of Vodafone Group PLC rose on Monday after a report saying the telecommunications group will sell part of its Spanish arm in a deal valuing the latter at over $5.3 billion.
Zegona Communications , a London-based group that invests in European telecommunications, media and technology, has emerged as the winning bidder for a 50% or stake in the Spain unit, with a deal expected within days, Bloomberg reported, citing sources.
In September, Zegona confirmed it was in talks over buying Vodafone’s Spanish arm. Those sources also said any deal could still fall through.
MarketWatch has reached out to Vodafone and Zegona for comment.
U.S.-listed shares of Vodafone
VOD,
rose just over 1% in premarket trading, while those in London
VOD,
were up more modestly. Vodafone shares have lost over 9% so far this year.
Deutsche Bank analysts last week lifted their target price on Vodafone to 155 pence from 165 pence, and stuck to a buy rating, citing a possible Spain deal as one boost.
Analyst Robert Grindle said the “major drag from energy prices” should start to normalize in the second half of the year, then reverse in 2025. He said shares have struggled against higher interest rates and also emerging market foreign exchange effects, the latter of which is no longer weighing.
Grindle had mentioned the potential for a deal in Spain as one possible boost for the company. Other positives, he mentioned: U.K. consolidation, a “slowly improving top line” and Vodafone’s deal announced in August to provide 5G coverage for customers of German broadband group 1&1
1U1,
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