Keystone, Delek Israel, Leumi Partners Complete Hot Mobile Acquisition
Translated & summarized from Calcalist by baba
The story in 5 lines · by baba
- Hot Mobile acquired by Keystone, Delek Israel, and Leumi Partners for NIS 1.22 billion.
- Keystone and Delek Israel each hold 40% stakes in the acquired company.
- The acquisition marks Delek Israel's expansion into the telecommunications sector.
- Hot Mobile is a profitable company with over two million subscribers.
- The new owners plan a potential future stock exchange listing for Hot Mobile.
The acquisition of Hot Mobile has been finalized, with Keystone, Delek Israel, and Leumi Partners officially taking over the mobile operator after receiving all necessary approvals. Businessman Patrick Drahi, the seller, will receive NIS 1.22 billion.
Following the purchase, Keystone will hold a 40% stake in the company that will own Hot Mobile, with Delek Israel also holding 40%, and Leumi Partners holding the remainder. Hot Mobile serves over two million subscribers and co-owns PHI, which operates the shared cellular network with Partner.
The acquisition integrates Hot Mobile's cellular operations and extensive customer base with national communication infrastructure. Approximately 60% of the purchase price was financed by a loan taken out by Hot Mobile, without recourse to the acquiring partnership or its members. The remaining portion was funded by equity from the partners.
Delek Israel, controlled by Lahav Al-Ar and B.G.M., with the Delek Group holding a 25% stake, is expanding from its retail operations into the communications sector. The company plans to leverage its existing customer base, loyalty programs, and package deals to promote the new consumer product. Keystone, controlled by Gil Deych, Roni Birem, and Navot Bar, is involved in infrastructure and energy, as well as transportation through its acquisition of Egged. For Keystone, this acquisition adds national communication infrastructure to its portfolio, complementing its existing transportation and energy assets with a long-term, infrastructure-like asset generating cash flow. Keystone is publicly traded with a market value of NIS 4.2 billion, having seen a 106% increase in its stock price over the past 12 months.
Leumi Partners, managed by Victor Vart, views this as a financial investment with potential for appreciation and exit. Hot Mobile is a profitable company, reporting revenues of approximately NIS 1.41 billion and a net profit of NIS 85 million in 2025. The acquiring partners also intend to pursue a future stock exchange listing for Hot Mobile, which could provide a clear path for value realization for Leumi Partners and the other stakeholders.
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