Drahi set to consolidate control at HOT

28 Oct 2010

French businessman Patrick Drahi is set to become the controlling shareholder of Israel’s HOT Telecommunication Systems once deals to acquire shares held in the cableco by Fishman Holdings and Yediot Communications are completed, Globes Online is reporting. At present Drahi holds a 44.7% stake in HOT, having initially acquired Bank Leumi’s 15% holding for ILS381 million (USD105 million) in May 2009, then subsequently increasing this through further transactions. Drahi’s agreements with HOT’s other two largest shareholders comprise several elements, and are subject to the publication of an offer to purchase HOT shares. The Frenchman will purchase 4.5 million shares (representing a 6% stake) from Fishman Holdings at ILS54.5 per share, although if the public offer is at a higher price this cost will apply to Fishman’s stake. Drahi meanwhile will purchase a further ten million shares (13.2%) from Yediot in June 2011 at ILS64 per share. Upon completion of the deals Drahi will own almost 66% of HOT shares, while Fishman Holdings and Yediot Communications’ holdings will fall to 6.61% and 3.6% respectively.

Israel, HOT Telecommunication Systems