Keystone, Delek Israel, and Meitav Partners Complete HOT Mobile Acquisition

The acquisition of the Israeli mobile carrier HOT Mobile has been finalized, with Keystone, Delek Israel, and Meitav Partners completing the purchase for a final sum of approximately 1.218 billion shekels. All necessary approvals for the transaction have been secured. Following the completion, HOT Mobile now belongs to its new owners, has a new board of directors, and has appointed Deganit Kremer as its CEO. Under the new ownership structure, Keystone and Delek Israel will each hold a 40% stake in the acquiring partnership, while Meitav Partners will own the remaining 20%. Keystone is making its investment through its subsidiary Keystone Com, contributing approximately 207 million shekels in equity for the deal. A notable aspect of the transaction is its financing structure, where about 60% of the purchase price was funded by a bank loan taken out by HOT Mobile itself. This loan is non-recourse to the acquiring partnership and its shareholders, meaning the debt rests with the acquired company, not the new owners. The remaining portion of the purchase price was financed by equity from the three partners. For Keystone, this acquisition significantly expands its exposure to the telecommunications infrastructure sector, adding an asset with extensive operational activity to its portfolio. HOT Mobile serves over two million subscribers and co-owns 50% of PHI, which operates the shared mobile network with Partner. This gives the acquiring group not only a mobile operation with a large customer base but also a stake in national communication infrastructure. The partners plan to focus on developing HOT Mobile's operations, strengthening its sales and service systems, and maximizing its business and infrastructure potential. Keystone is expected to contribute its expertise in managing and improving infrastructure assets, Delek Israel its consumer and retail market experience, and Meitav Partners its financial and investment capabilities.