The deal is complete: Final approval received for the sale of Hot Mobile

Minister of Communications Shlomo Karhi has approved the transfer of controlling shares in the mobile operator Hot Mobile from the Altice group to the group of buyers led by Delek Israel, the infrastructure fund Keystone, and Leumi Partners. This marks the receipt of the final regulatory approval required for the deal, following the green light from the Competition Authority earlier this month.

The Ministry of Communications stated:

"The minister's decision was made following a comprehensive review conducted by the Economics Division and the Legal Bureau of the Ministry of Communications. As part of the review, the financial strength of the purchasing group, the competitive effects of the deal on the communications market, and the commitment to investment in advanced communications infrastructure were examined."

As part of the deal, the three partners will acquire all shares of Hot Mobile at a valuation of approximately 1.2 billion shekels. Delek Israel and Keystone will each hold 40%, and Leumi Partners will hold 20%. About 700 million shekels of the deal will be financed by a loan from Bank Leumi.

The main regulatory hurdle

The approval from the Ministry of Communications was the primary regulatory hurdle remaining on the path to completing the deal. At the beginning of August, the Competition Authority approved the acquisition relatively quickly, partly because the three buyers currently have no mobile operations that compete with Hot Mobile. Now the parties can move forward to complete the additional conditions set in the agreement and to actually close the deal.

Hot Mobile is one of the four largest mobile companies in Israel and serves about 2 million subscribers. Beyond the mobile activity itself, one of its key assets is the 49.99% stake in PHI Networks, the joint mobile infrastructure company owned by it and Partner, which operates thousands of cellular sites across the country. This asset is also one of the main reasons for Keystone's interest in the company, as part of its focus on infrastructure investments.

In 2025, Hot Mobile recorded revenue of approximately 1.41 billion shekels and a net profit of 85 million shekels. In the first quarter of 2026, its revenue totaled about 324 million shekels, and the net profit stood at about 23 million shekels.

Towards an IPO?

For Delek Israel, the acquisition brings the group into the communications sector for the first time on a significant scale, alongside its gas station business, convenience stores, and other retail activities. The company has already signaled the possibility of creating connections in the future between its large customer base and Hot Mobile's operations.

According to the agreement between the buyers, they also intend to work in the future on taking Hot Mobile public on the stock exchange. If this move matures, it could turn the mobile company into an independent public company and provide Delek Israel, Keystone, and Leumi Partners with the opportunity to unlock value from the investment.

The sale of Hot Mobile also marks another step in the reduction of Patrick Drahi's activities in Israel. The French-Israeli billionaire, who controls Hot through the Altice group, chose to sell the mobile activity separately from Hot's television, internet, and landline telephony activities. During the process, Pelephone was also interested in purchasing the company, but ultimately the offer from the Delek Israel, Keystone, and Leumi Partners group was chosen.