Hot Mobile sale to Dlek Israel-led group expected to close within days

After nearly half a year of delays and changes to the buyer lineup, the acquisition of Hot Mobile is nearing completion and is expected to close in the coming days. The deal was first announced about six months ago and has gone through several revisions before reaching the finish line.

Under the current structure, Dlek Israel will hold 40% of the purchase vehicle, Keystone Infrastructure Fund 40%, and Leumi Partners 20%. The group is buying the mobile operator from Altice, the telecom company controlled by billionaire Patrick Drahi, at an implied valuation of about 1.9 billion shekels. Most of the financing is expected to come from Hot Mobile’s own cash.

Market estimates put Hot Mobile’s subscriber base at around 2 million, generating more than 1.5 billion shekels in annual revenue. The sale comes after Altice put its larger Hot cable and telecom group up for sale at the end of last year because of its high leverage, but eventually decided to sell Hot Mobile separately.

Dlek Israel, managed by Yoram Eyal and controlled by Lahav Al. Ar through Avi Levy, sees operational synergies in telecom and retail. It runs about 240 fuel stations, has an 18% market share in fuel, and also owns Burger King, Cafe Joe, Menta convenience stores, and the Zappa club chain. The company ended 2025 with roughly 4.8 billion shekels in revenue.

Dlek Israel first said in January that its offer to buy Hot Mobile for 1.88 billion shekels had been accepted, beating a higher 2.3 billion shekel bid from Bezeq’s Pelephone because it was seen as more likely to close. It was granted 60 days of exclusivity for due diligence, but a binding agreement was repeatedly delayed. After the original memorandum of understanding, Leumi Partners and Mor were added as partners, and in April Keystone replaced Mor as the main partner in the deal.