HOT Mobile Sold for NIS 1.2 Billion in Major Israeli Telecom Deal
Translated & summarized from Ice by baba
The story in 5 lines · by baba
- HOT Mobile has been sold for approximately NIS 1.218 billion.
- The buyer is a partnership of Dalia Israel, Keystone, and Leumi Partners.
- The deal values HOT Mobile at roughly NIS 1.88 billion.
- A new CEO and board of directors have been appointed for HOT Mobile.
- The sale follows HOT Group's exit from the IBC fiber venture.
The Israeli telecommunications market has seen a significant transaction with the completion of the sale of HOT Mobile. The HOT Group, controlled by Patrick Drahi's Altice Group, announced the transfer of ownership and management of HOT Mobile to a partnership comprising Dalia Israel, Keystone, and Leumi Partners. The cash proceeds for HOT Group amount to approximately NIS 1.218 billion, valuing HOT Mobile at roughly NIS 1.88 billion.
Following the deal, Dganit Kremer has been appointed as the new CEO of HOT Mobile, and a new board of directors has been established. Keystone will hold a 40% stake in the purchasing partnership through its subsidiary Keystone Com, with Dalia Israel holding another 40% and Leumi Partners the remaining 20%. Keystone contributed approximately NIS 207 million in equity, while about 60% of the purchase price was financed through a bank loan taken by HOT Mobile, without recourse to the purchasing partnership or its partners.
HOT Mobile currently serves over 2 million private and business customers and co-operates the PHI company, which operates the shared cellular network with Partner. Keystone stated that this acquisition expands its telecommunications infrastructure operations, integrating a cellular business with a large customer base and ownership of national communication infrastructure.
HOT Mobile was originally acquired by HOT Group in 2011 and relaunched under its current brand. Over its 15 years with the group, HOT Mobile invested in upgrading its technological infrastructure, including 4G and 5G networks, and establishing PHI. HOT Group highlighted HOT Mobile's role as a key driver of competition in Israel's mobile market, noting its growth in revenue, customer numbers, and EBITDA, which contributed to its valuation in the sale.
This sale follows HOT Group's earlier divestment from the IBC fiber optic venture, which it sold for approximately NIS 2.2 billion. Tal Grannot Goldstein, CEO of HOT Group, commented that HOT Mobile has been a significant competitor since its inception, driving technological advancement and customer service. She expressed confidence that the new owners will maintain the company's service standards and customer value proposition.
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