Pelephone raises offer for Hot Mobile

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The battle to buy Hot Mobile is heating up. After a new offer for the mobile phone company was submitted by Gil Sharon and institutional bodies, Bezeq Israel Telecommunications Company Ltd. (TASE:BZEQ) mobile phone unit Pelephone has notified the Tel Aviv Stock Exchange (TASE) that it has raised its offer and has set a deadline for Hot Mobile’s parent company Altic to accept it.

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Four months ago, Pelephone submitted an initial, non-binding letter of intent to Altice, proposing to acquire Hot Mobile for up to NIS 2 billion. Pelephone, Altice and its representatives have had some contact since then, and now Pelephone is updating that it has submitted a revised, non-binding, time-limited letter of intent for the cash purchase of full ownership of Hot Mobile for up to NIS 2.1 billion.

Pelephone stresses that there is no certainty that submission of the updated document will lead to continued negotiations on the acquisition. The document is valid until November 16. Bezeq emphasizes in the notification that it intends to maintain its AA credit rating and its dividend policy.

Hot Mobile is part of Hot Telecom, which is owned by Altice International, owned by billionaire Patrick Drahi. Altice Group is leveraged and the sale of Hot Mobile (or Hot as a whole, if such a deal is made) will help it reduce debt.

Yesterday it was announced that Gil Sharon is forming an offer together with Israeli institutional entities for NIS 1.4 billion. This offer would have a greater chance of receiving regulatory approval. In the past, Partner offered to acquire Altice’s business customers from Hot.

Pelephone, part of the Bezeq Group, is managed by Ilan Sigal. In the third quarter, the company reported 2.2% growth in revenue to NIS 517 million, of which NIS 381 million was revenue from services. Adjusted EBITDA amounted to NIS 202 million and net profit was NIS 38 million. At the end of the third quarter, the company had 2.66 million subscribers, of which about 1.35 million were on 5G packages. ARPU increased by NIS 2 to NIS 48. Sigal said that Pelephone had reported a decade-long record in service revenue and a six-year record in ARPU.

Published by Globes, Israel business news - en.globes.co.il - on November 11, 2025.