Ministry of Communications Approved the Sale of Hot Mobile to Delek Retail and Keystone

The Ministry of Communications approved today, Monday, the transfer of control over the cellular provider Hot Mobile from Altice, owned by businessman Patrick Drahi, to a group led by Delek Retail and the Keystone fund. The completion of the deal is expected on September 30.

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

Hot Mobile's revenues are estimated at 1.5 billion shekels, and it serves about 2 million subscribers. In June, after six months of negotiations, Altice and the purchasing group agreed on the acquisition of Hot Mobile for 1.8 billion shekels. The group was preferred over Pelephone, which submitted a higher bid of 2.1 billion shekels, due to the assessment that its chances of receiving regulatory approvals were higher.

The cash consideration stands at 1.2 billion shekels. An additional 600 million shekels reflect Hot Mobile's liabilities, which the purchasing group will assume. Delek Retail and Keystone will each hold 40% of the provider, and Leumi Partners will hold the remaining 20%. Management rights will be held by Delek Retail. Earlier this month, the Competition Authority also approved the deal.