Hot Mobile Acquisition Completed: Sold to Keystone, Delek, and Leumi
HOT Group has completed the sale of Hot Mobile to Delek Israel, Keystone, and Leumi Partners for 1.218 billion shekels, valuing the company at 1.88 billion shekels.
The major telecommunications deal in Israel has been officially completed as the HOT Group, controlled by Patrick Drahi’s Altice Group, announced the finalized sale of Hot Mobile. Ownership and management have been transferred to a partnership consisting of Delek Israel, Keystone, and Leumi Partners.
The cash consideration paid to the HOT Group amounts to approximately 1.218 billion shekels, while the transaction values Hot Mobile at roughly 1.88 billion shekels. Following the completion of the deal, Hot Mobile passed into the hands of its new owners, a new board of directors was appointed, and Dganit Kramer took over as CEO.
Ownership Structure and Financing
Keystone reported that it holds a 40% stake in the acquiring partnership through its subsidiary Keystone Comm. Delek Israel holds an additional 40%, and Leumi Partners holds the remaining 20%. As part of the transaction, Keystone provided equity of about 207 million shekels.
About 60% of the acquisition cost was financed through a bank loan taken out by Hot Mobile, without recourse to the acquiring partnership or its members. The remainder of the consideration was financed through equity provided by the partners.
Hot Mobile currently serves over 2 million private and business customers and holds a 50% stake in PHI, the shared cellular network operator with Partner Communications. Keystone stated that the acquisition expands its footprint in telecommunications infrastructure.
"Hot Mobile is the primary and most significant catalyst for competition in Israel's cellular market," said HOT Group CEO Tal Granot.
Strategic Shifts in Israeli Telecom
HOT originally acquired Miras in 2011, later relaunching its operations under the Hot Mobile brand. Over 15 years under the group, the company invested in upgrading technological infrastructure, deploying 4G and 5D networks, and establishing PHI.
The sale of Hot Mobile follows HOT's divestment of its stake in the IBC fiber optic venture, which was sold based on a total valuation of approximately 2.2 billion shekels.
