Patrick Drahi’s Altice to sell HOT Mobile to Delek Retail and Keystone for NIS 1.8 Billion
The Ministry of Communications approval follows clearance from the Competition Authority earlier this month, after the acquiring group was favored over Pelephone, which offered a higher price
The Ministry of Communications approved the transfer of control of cellular provider HOT Mobile from Altice, owned by businessman Patrick Drahi, to a consortium led by Delek Retail and Keystone. HOT Mobile’s revenues are estimated at NIS 1.5 billion, and it serves approximately 2 million subscribers.
The decision was made following a comprehensive review conducted by the ministry’s Economics Division and Legal Bureau. “As part of the review, the financial strength of the acquiring group, the competitive impact of the transaction on the communications market, and its commitment to investing in advanced communications infrastructure were examined,” the ministry said in a press release.
In June, following six months of negotiations, Altice and the acquiring group agreed on the sale of HOT Mobile for NIS 1.8 billion. The group was favored over Pelephone, which submitted a higher bid of NIS 2.1 billion, due to the assessment that it had a greater likelihood of securing regulatory approval.
The cash consideration amounts to NIS 1.2 billion. An additional NIS 600 million represents HOT Mobile liabilities that will be assumed by the acquiring group. Delek Retail and Keystone will each hold a 40% stake in the provider, while Leumi Partners will hold the remaining 20%. Management rights will be held by Delek Retail. Earlier this month, the Competition Authority also approved the transaction.
