Cool Holdings to boost HOT stake to 65%

27 Jun 2011

French businessman Patrick Drahi will pay around ILS650 million (USD188.7 million) in order to boost his stake in Israeli cableco HOT Telecommunication Systems to 65%, Globes Online reports. At present Drahi holds 51.7% of HOT via his Cool Holdings Ltd unit, and it is understood that this company has now exercised an option to acquire 10,012,003 shares in the cableco that are currently held by Yediot Communications. Cool Holdings will pay ILS65 per share under the terms of the deal, a 13% premium on the stock’s closing price towards the end of last week. The stake acquisition will take place in two stages, with 76% of the shares to be acquired in November this year, while the remainder will be transferred a year later. Once the deal is completed Yediot Communications’ stake in HOT will fall to 3.3%.