Ericsson and France Telecom sign MoU on Mobilcom financing
Under the agreement, Ericsson and France Telecom will convert Ericsson's outstanding customer financing to Mobilcom into a convertible loan issued by France Telecom to Ericsson in the amount of approximately EUR 444 million.
With the signing of the MoU, Ericsson and France Telecom reconfirm their mutual close and long-lasting business relation.
The effect of the agreement will be that Ericsson no longer has exposure to Mobilcom; future exposure will be to France Telecom. The structure of the convertible loan is the same as that offered by France Telecom to banks with credits to Mobilcom.
"Ericsson will continue to actively monitor its exposure under this transaction in a diligent manner, including making adequate risk provisions," said Sten Fornell, Executive Vice President & Chief Financial Officer of Ericsson.
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