Dalk Israel-Led Consortium Acquires HOT Mobile for 1.2 Billion Shekels

A consortium led by Dalk Israel, Keystone Infrastructure Fund, and Leumi Partners has finalized the agreement to purchase HOT Mobile from Altice Group, owned by billionaire Patrick Drahi, for 1.218 billion shekels. The buyers will contribute about 500 million shekels from their own funds, with Dalk Israel and Keystone each investing approximately 207 million shekels, and Leumi Partners adding around 104 million shekels. The remaining 700 million shekels will be financed through a loan from Bank Leumi. Upon completion, Dalk Israel and Keystone will each hold 40% of HOT Mobile shares, while Leumi Partners will own 20%. The deal awaits regulatory approvals from the Competition Authority and the Ministry of Communications.

The agreement includes a partnership contract detailing governance, director appointments, dividend distribution, share transfer restrictions, and plans for HOT Mobile’s public listing. HOT Mobile, part of Altice’s HOT Group, serves about 2 million customers and reported revenues close to 1.4 billion shekels in 2025, a 2.6% decline from 2024. Gross profit rose 3.9% to 855 million shekels, improving the gross margin from 58.4% to 62.3%. Operating profit remained stable at 60 million shekels, while net profit dropped sharply to 45 million shekels from 85 million the previous year. In Q1 2026, HOT Mobile posted revenues of 324 million shekels and a net profit of 23 million shekels, showing operational improvement.

The buyers highlighted HOT Mobile’s growth potential through increased average revenue per user, 5G service expansion, and value creation via targeted enhancements. HOT Mobile holds nearly 50% of the cellular infrastructure company PHI, which the consortium plans to develop further, including international expansion. Dalk Israel, owned by public company Lahav L.R. and businessman Uri Mansour, will leverage its retail, energy, and consumer service expertise to expand HOT Mobile’s consumer base and improve service quality nationwide. Keystone will focus on advancing HOT Mobile’s infrastructure assets, drawing on its long-term investment experience.

Dalk Israel’s deputy CEO, Keren Kopermintz, emphasized the strategic fit of HOT Mobile as the fourth-largest Israeli cellular operator, complementing Dalk’s existing businesses and nearly one million app users. She dismissed price hikes as a growth strategy, instead citing market expansion driven by population growth and increased device usage. HOT Mobile holds a market share estimated between 13% and 16%, trailing behind the three largest Israeli cellular providers: Cellcom, Partner, and Pelephone. Pelephone had previously sought to acquire HOT Mobile but withdrew due to regulatory concerns, leading Altice to accept the consortium’s offer.

The sale occurs amid a revenue plateau among Israel’s top three cellular companies in Q1 2026, partly due to reduced roaming income during the "Lion’s Roar" military operation. Pelephone reported a quarterly net loss due to restructuring costs, while Cellcom and Partner saw net profit growth. The transaction marks a significant shift in Israel’s telecom landscape, with the consortium aiming to unlock HOT Mobile’s full commercial and infrastructural potential.