Israeli Competition Authority Approves HOT Mobile Sale Valued at 1.8 Billion Shekels

The Israeli Competition Authority has approved the sale of HOT Mobile, according to reports received by Calcalist. The approval was granted to the involved companies just hours ago, marking a relatively swift process since the deal was signed on June 30, less than a week ago. The transaction now awaits final approval from the Ministry of Communications, which has yet to conclude its review of the merger.

Under the terms of the deal, HOT Mobile was acquired from Patrick Drahi's HOT Group by a consortium including Delek Israel and Keystone Fund, each holding 40%, and Leumi Partners with a 20% stake. The purchase price stands at 1.2 billion shekels, reflecting an overall valuation of HOT Mobile's operations at 1.8 billion shekels.

Financially, Bank Leumi provided 700 million shekels in financing, while the partners contributed 500 million shekels in equity. HOT Mobile carries a debt of 600 million shekels. The company generates estimated revenues of 1.5 billion shekels and serves approximately 2 million subscribers.

Following this transaction, Pelephone, which had also competed to acquire HOT Mobile, purchased Wikum for 265 million shekels.