HOT Mobile Sold for NIS 1.88 Billion Valuation

The sale of cellular provider HOT Mobile has been finalized, with the company acquired by a partnership of Delek Israel, Cassiton, and Leumi Partners. The transaction values HOT Mobile at approximately NIS 1.88 billion. However, the actual cash amount the seller will receive is around NIS 1.218 billion, with the higher figure reflecting the overall valuation. Delek Israel and Cassiton each hold a 40% stake in the acquiring partnership, while Leumi Partners owns 20%. This acquisition marks the entry of these three companies into the telecommunications sector.

HOT Mobile was sold by HOT Telecommunications Systems, which is controlled by Altice Group, owned by businessman Patrick Drahi. The proceeds from the sale are intended to reduce Altice International's debt. HOT Mobile currently serves over two million private and business customers, with estimated revenues of approximately NIS 1.5 billion. The company's operations under HOT began in 2011 when the group purchased Mirs and subsequently relaunched it as HOT Mobile.

HOT stated that the consistent growth in customer numbers, revenue, and EBITDA, along with the company's strengthening in key operational metrics, contributed to the valuation achieved in the deal. The company also noted that preparations for the transaction's completion and the transfer of the company to the buyers have been underway since the memorandum of understanding was signed.

This sale follows another divestment by HOT, which previously sold its stake in the IBC fiber optic venture for a total valuation of approximately NIS 2.2 billion. HOT indicated that these moves align with its strategy to focus on core operations and continue investing in service development for its customers.