Minister of Communications Shlomo Karhi has approved the transfer of the controlling shares of Hot Mobile from Altice to a consortium led by Delek Israel, Keystone Infra (TASE: KSTN) and Leumi Partners. Thus the final regulatory approval required for the deal has been received, after the Israel Competition Authority gave it the green light, earlier this month.
The Ministry of Communications said, "The minister's decision was made following a comprehensive review conducted by the Economic Affairs Directorate and the Legal Bureau at the Ministry of Communications. The review examined the financial strength of the consortium, the competitive effects of the deal on the communications market, and the commitment to investing in advanced communications infrastructure."
As part of the deal, the three partners in the consortium will purchase all of Hot Mobile's shares from the Hot Group, which is controlled by billionaire Patrick Drahi’s Altice. Delek Israel and Keystone will each hold 40% of the company, and Leumi Partners will hold the remaining 20%. Altice will receive NIS 1.2 billion, reflecting a valuation of about NIS 1.8 billion for Hot Mobile’s activity,
The main regulatory hurdle
The approval of the Ministry of Communications was the main regulatory hurdle remaining on the way to completing the deal. In early August, the Competition Authority approved the acquisition relatively quickly, in part because the three buyers do not have mobile phone operations that compete with Hot Mobile. Now the consortium will be able to move forward with completing the other terms set out in the agreement and closing the deal.
Hot Mobile is one of the four biggest mobile phone companies in Israel with about 2 million subscribers. Beyond its cellular operations, one of its main assets is its 49.99% holding in PHI Networks, a cellular infrastructure company jointly owned with a partner, which operates thousands of cellular sites across the country. This asset is one of the main reasons for Keystone's interest in Hot Mobile, as part of its focus on infrastructure investments.
In 2025, Hot Mobile reported revenue of NIS 1.41 billion and net profit of NIS 85 million. In the first quarter of 2026, revenue was NIS 324 million, and net profit was NIS 23 million.
Towards an IPO?
For Delek Israel, the acquisition introduces the group for the first time into a major communications activity, alongside the gas station business, convenience stores and other retail activities. The company has already indicated the possibility of creating connections between its large customer base and Hot Mobile's activities in the future.
According to the agreement between the buyers, they also plan an IPO for Hot Mobile on the TASE. If the move matures, it would turn Hot Mobile into a publicly traded company and provide Delek Israel, Keystone and Leumi Partners with the opportunity to capture value from the investment.
The sale of Hot Mobile also marks another step in reducing Drahi's activities in Israel. The French-Israeli billionaire, who controls Hot through the Altice Group, chose to sell the cellular operation separately from Hot's television, Internet and landline telephony operations. Pelephone was also interested in acquiring the company, but ultimately, the bid from Delek Israel Group, Keystone and Leumi Partners was preferred.
Published by Globes, Israel business news - en.globes.co.il - on August 31, 2026.
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