Drahi completes HOT takeover

30 Nov 2011

French businessman Patrick Drahi has reportedly completed the takeover of Israeli cableco HOT Telecommunication Systems via his Cool Holdings Unit, Globes Online reports. The finalising of the takeover comes after Cool Holdings purchased 10,012,033 HOT shares at ILS65.10 (USD14.66) per share from Yediot Communications’ owner Arnon Mozes, in line with previously announced plans. Following the share acquisition Drahi now holds 64.7% of HOT stock, while Mozes will retain 3.5% of the cableco.

As noted in TeleGeography’s GlobalComms Database, in May 2009 it was revealed that Bank Leumi had sold its 15% share in HOT to Drahi for ILS381 million, and later that same month the latter announced the acquisition of Israel Discount Bank’s 1.9% stake in HOT. Having boosted his holding further, to just under 45%, before the end of the year, more recently, in October 2010 Drahi revealed plans to become HOT’s controlling shareholder amid reports that deals to acquire shares held in the cableco by Fishman Holdings and Yediot Communications were in the works. It was subsequently confirmed that the Frenchman would purchase 4.5 million shares (representing a 6% stake) from Fishman Holdings at ILS54.5 per share, alongside the purchase of the ten million shares (13.2%) from Yediot Communications.

Israel, HOT Telecommunication Systems