In a statement, it says it has announced a proposed placing of at least 95,238.096 ordinary shares to raise at least £100 million.
It has also entered into loan agreements with the Virgin Group and Barcalys Bank under which it can draw up to £30 million. It now intends to use this funding to increase its ownership in Euskaltel and to work with its board and management to improve the performance of the business.
Zegona has also entered into a shareholder agreement with Talomon Capital Limited, which is a shareholder in both Zegona and Euskaltel.
Talomon currently holds around 1.4% in Eusklatel and under the share agreement will be entitled to own up to 2.4%.