Ericsson and France Telecom Sign MoU On Mobilcom Financing
Friday September 13, 12:16 pm ET
STOCKHOLM, Sweden--(BUSINESS WIRE)--Sept. 13, 2002--Ericsson (NASDAQ:ERICY - News) and France Telecom have signed an MoU (Memorandum of Understanding) covering the restructuring of Ericsson's financing to Mobilcom.
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.
Ericsson is shaping the future of Mobile and Broadband Internet communications through its continuous technology leadership. Providing innovative solutions in more than 140 countries, Ericsson is helping to create the most powerful communication companies in the world.
Read more at http://www.ericsson.com/press
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Contact:
Ericsson
Kathy Egan, 212/685-4030
Pressrelations@ericsson.com
or
Glenn Sapadin, 212/685-4030
Investor.relations@ericsson.com
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