AXA Investment Management is in talks to buy a significant minority stake in Telefónica and Vodafone Spain’s fiber joint venture (JV).

As reported by the Financial Times, discussions are at an advanced stage and could generate hundreds of millions of euros for the telecoms companies.

A source told the newspaper that AXA IM is pushing to scoop a 30 percent stake in FiberPass.

FiberPass, set up earlier this year, is a company that provides wholesale fiber optic and other connectivity services over fiber technology to Telefónica España and Vodafone Spain in selected areas of Spain, according to the JV’s website.

The JV serves more than 3.5 million premises, and is valued at around €1.5bn ($1.74bn), according to estimates by New Street Research, reports the FT.

When the JV was established earlier this year, Telefónica Group took a 63 percent stake, while the remaining 37 percent is owned by Vodafone España.

The deal will see Telefónica retain its majority ownership, while Vodafone’s stake will slim down to around 10 percent.

Vodafone Spain was sold last year by its parent company to UK investment firm Zegona for €5 billion ($5.8bn).

An announcement is likely to come before the end of September, according to one of the people with knowledge of the talks.