Israel's Bezeq unit signs MOU to buy rival from Altice for $652 million
Bezeq Israel Telecom's mobile unit, Pelephone, has signed a preliminary deal to acquire rival HOT Mobile from Altice International for $652 million. The non-binding memorandum of understanding allows 45 days for due diligence and negotiation. The deal requires approvals from both companies' boards and Israeli authorities. Pelephone had previously offered a lower amount, and other interested parties have made lower bids.
JERUSALEM, Nov 17 (Reuters) - Bezeq Israel Telecom (BEZQ.TA) said on Monday its mobile unit Pelephone signed a preliminary deal to buy all of rival HOT Mobile for 2.1 billion shekels ($652 million) in cash from Patrick Drahi’s Altice International.
Bezeq, Israel’s largest telecoms group, said in a regulatory filing to the Tel Aviv Stock Exchange that signing the non-binding memorandum of understanding gives Pelephone 45 days to conduct due diligence and work towards a purchase agreement.
Pelephone does not have exclusivity during the negotiating period.
A final deal would require a host of approvals, including from both companies’ boards and Israel’s Communications Ministry and Competition Authority.
Pelephone in July had offered Altice up to 2 billion shekels for HOT Mobile but it was not accepted. It raised the offer last week.
Israeli media reported that two other parties were also interested but their offers had so far been far lower than Pelephone’s. ($1 = 3.2220 shekels)
