Ericsson Moves Ahead with Acquisition of 23.1M C Shares for Executive Compensation
Stockholm, Monday, 5 May 2025.
Ericsson plans to acquire 23.1 million C shares to bolster its Long-Term Variable Compensation Programs for 2025 and 2024, potentially reshaping its share structure significantly by mid-May.
Strategic Share Acquisition Details
The Board of Directors has authorized an acquisition offer for C shares during May 5-19, 2025, with a cash payment of approximately SEK 5 per share [1]. Skandinaviska Enskilda Banken AB (SEB) has already subscribed to all 23.1 million C shares and indicated their intention to accept the acquisition offer [2]. The strategic move comes as Ericsson demonstrates strong market performance, having secured a commanding 42% market share in the Radio Access Network sector during Q1 2025 [3].
Financial Performance and Market Position
Ericsson’s financial trajectory shows remarkable strength, with Q1 2025 results revealing net sales of SEK 55.0 billion, marking a 3.189% increase from Q1 2024 [4]. The company’s adjusted gross margin has improved significantly to 48.5%, up from 42.7% in the previous year [4]. This robust financial performance has been particularly driven by 5G extensions in the United States and a significant network replacement deal with AT&T [3].
Share Structure Transformation
Following the acquisition, Ericsson plans to convert all C shares to B shares, which will result in a total of 3,371,351,735 shares, comprising 261,755,983 A shares and 3,109,595,752 B shares [1]. Currently, Ericsson holds 15,579,561 B shares as treasury stock [1]. This restructuring aligns with the company’s broader strategy to strengthen its executive compensation programs while maintaining market leadership in the telecommunications sector [5].
Future Growth Trajectory
Looking ahead, Ericsson is positioning itself for future growth in emerging market segments. Industry analysis suggests that Private Cellular, Open RAN, and Virtual RAN technologies will become increasingly significant over the next five years, with AI/ML-powered RAN optimization emerging as a key revenue growth area [3]. The company’s recent partnership developments, including a programmable networks initiative in the Asia Pacific region with Telstra, further demonstrate its commitment to technological leadership [4].