Ericsson and France Telecom have signed a memorandum of understanding regarding the restructuring of Ericsson’s financing of MobilCom. The agreement will see Ericsson’s outstanding customer financing to MobilCom converted into a convertible loan issued by France Telecom. The loan is worth around E444 million.
The agreement means that Ericsson is no longer exposed to MobilCom: its future exposure will be to France Telecom, which represents a much lower risk. The memorandum of understanding also confirms the mutual trust and business relation between the two companies.