Bezeq Israel Telecom has announced plans to acquire local telecoms firm Exelera Telecom Ltd. (formerly Tamares Telecom Ltd) in a deal worth $160 million.

The telco confirmed this week that it has signed a Memorandum of Understanding (MoU) to acquire 100 percent of Exelera.

As noted by Bezeq, the company will consider acquiring Exelera's shares from the fund, which currently holds approximately 82 percent of the company's shares, plus from Ayalon Insurance & Finance, Ltd., which holds approximately 18 percent.

In addition to the $160m, Bezeq could pay an additional $10m depending on certain conditions being met.

Bezeq said the completion of the deal is subject to the signing of a definitive binding agreement by the end of an exclusive period of 75 days from the date of the MoU, during which Bezeq will conduct due diligence.

“The signing of the preliminary memorandum of understanding with Exelera marks another step in a series of strategic moves we are undertaking to strengthen Bezeq Group’s position as a key infrastructure player in the regional arena and to expand our global footprint, alongside growing interest and demand from international parties," said Nir David, CEO of Bezeq.

"Bezeq will continue working to enhance the independence of Israel’s telecommunications infrastructure and deepen competition in the market.”

Exelera provisions telecoms services via an international telecommunications network based on a fiber-optic submarine cable, and operates a landing station in Israel. Exelera also operates data centers.

Bezeq keen to buy Altice-owned HOT Mobile

Also this week, Reuters has reported that Bezeq-owned mobile carrier Pelephone has offered up to 2 billion shekels ($594 million) to acquire rival HOT Mobile from Patrick Drahi's Altice International.

In a regulatory filing, Bezeq noted that it has submitted a non-binding letter of intent to acquire the business. The company said there was no assurance it would lead to negotiations or a deal.

HOT Mobile has around two million mobile subscribers, while Pelephone has around 2.6 million.