The sale of Israeli cellular provider HOT Mobile has been completed, with a consortium acquiring the company at a valuation of approximately NIS 1.88 billion.

HOT will receive approximately NIS 1.218 billion in cash from the transaction. The higher figure represents the valuation used for the deal rather than the cash payment to the seller.

Delek Israel and Keystone each hold 40% of the purchasing partnership, while Leumi Partners holds the remaining 20%. The acquisition brings the three companies into the telecommunications sector.

The seller, HOT Telecommunication Systems, is controlled by businessman Patrick Drahi’s Altice group. Proceeds from the sale will be used to reduce Altice’s international debt.

HOT Mobile serves more than two million private and business customers, with revenue estimated at approximately NIS 1.5 billion.

The company became part of HOT after the group acquired MIRS in 2011 and subsequently relaunched the business under the HOT Mobile brand.

HOT said consistent growth in customer numbers, revenue and operating earnings, alongside improvements in key performance measures, was reflected in the transaction’s valuation.

The group said it had been preparing to complete the sale and transfer the company to its new owners since signing the memorandum of understanding.

The transaction follows HOT’s sale of its stake in the IBC fiber-optic venture, which was carried out at an overall venture valuation of approximately NIS 2.2 billion.

HOT said the sales form part of its strategy to focus on its core operations while continuing to invest in developing services for its customers.

(YWN World Headquarters – NYC)