HOT set for major changes

October 25, 2012 11.30 Europe/London By Chris Dziadul

Patrick Drahi, the owner of the Israeli cable operator HOT, is exploring two deals over its future worth a combined total of over $400 million (Ä308.4 million).

Haaretz reports that the first of these would be delisting the company from the stock exchange and taking it private, at a cost of NIS852 million (Ä170.2 million).

The second is for Cool Holdings, HOTís parent company, to buy back around NIS850 million in private debt from institutions.

However, bondholders are asking for an early redemption fee of NIS220 million.

Drahi will also have to satisfy the wishes of Eliezer Fishman and Noni Mozes. Although they sold the majority of their shares to Drahi two years ago, they still retain respective shares of 6% and 3% in the company.

The financial future of HOT, which had over 880,000 subscribers as of Q1 this year, is likely to be decided in the next few months.