Israel Approves Sale of HOT Mobile Telecom Company

Israel's Ministry of Communications has given final approval for the sale of the mobile carrier HOT Mobile to a consortium of investors including Delek Israel, Keystone Infrastructure Fund, and Leumi Partners. This regulatory green light follows earlier approval from the Competition Authority, clearing the final hurdle for the transaction.

The three partners will acquire full ownership of HOT Mobile from the HOT Group, controlled by billionaire Patrick Drahi. Delek Israel and Keystone will each hold 40% of the company, with Leumi Partners taking the remaining 20%. The sale price is approximately 1.218 billion shekels, valuing HOT Mobile's operations at about 1.8 billion shekels.

HOT Mobile is one of Israel's four major mobile operators, serving around 2 million subscribers. A key asset is its 49.99% stake in PHI Networks, a joint cellular infrastructure company with Partner, which operates thousands of cell sites across the country. This infrastructure component is particularly attractive to Keystone, aligning with its focus on infrastructure investments.

In 2025, HOT Mobile reported revenues of approximately 1.41 billion shekels and a net profit of 85 million shekels. For the first quarter of 2026, revenues were around 324 million shekels with a net profit of 23 million shekels.

The acquisition marks Delek Israel's significant entry into the telecommunications sector, complementing its existing fuel and retail businesses. The purchasing consortium plans to explore future integration opportunities with Delek's customer base and intends to eventually list HOT Mobile on the stock exchange. This sale also signifies a further reduction in Patrick Drahi's business activities in Israel, as he chose to sell the mobile division separately from HOT's television, internet, and landline services. Pelephone had also expressed interest in acquiring the company during the process.