Nokia Corporation’s Share Buyback Program: An Overview
On 28 February 2025, Nokia Corporation (LEI: 549300A0JPRWG1KI7U06) made a significant move in its ongoing share buyback program. The Finnish telecommunications and technology company announced the acquisition of 1,400,000 of its own shares. In this blog post, we’ll delve deeper into the details of this transaction and discuss its potential impact on Nokia and the wider world.
Nokia’s Share Buyback Program: The Basics
On 22 November 2024, Nokia’s Board of Directors initiated a share buyback program with the aim of offsetting the dilutive effect of new Nokia shares issued to the shareholders of Infinera Corporation and certain Infinera Corporation share-based incentives. This program, which was announced in compliance with the Market Abuse Regulation (EU) 596/2014 (MAR), the Commission Delegated Regulation (EU) 2016/1052, and under the authorization granted by Nokia’s Annual General Meeting on 3 April 2024, started on 25 November 2024 and is set to end by 31 December 2025. The company aims to repurchase 150 million shares for a maximum aggregate purchase price of EUR 900 million.
The Latest Share Repurchase: A Closer Look
On 28 February 2025, Nokia acquired 1,400,000 of its own shares. The shares were purchased from various trading venues, including XHEL, CEUX, BATE, AQEU, and TQEX. The weighted average price per share was EUR 4.65.
Impact on Nokia
For Nokia, this latest share repurchase marks a step towards achieving its goal of buying back 150 million shares by the end of 2025. By reducing the number of outstanding shares, Nokia can increase its earnings per share (EPS), making its stock more attractive to investors. Additionally, the buyback program demonstrates the company’s confidence in its future growth prospects.
Impact on Shareholders
Nokia’s share buyback program could benefit its shareholders in several ways. With fewer shares in circulation, the demand for Nokia stock may increase, potentially driving up its price. Furthermore, the company’s increased EPS could lead to higher dividends and share buybacks in the future.
Impact on the World
Beyond Nokia, this share buyback program could have a ripple effect on the wider world. As a global leader in telecommunications and technology, Nokia’s financial performance and strategic moves are closely watched by investors and industry analysts. A successful share buyback program could boost investor confidence in the sector, encouraging further investment and innovation.
Conclusion
Nokia’s 28 February 2025 share repurchase is a significant step towards the company’s goal of offsetting the dilutive effect of new shares issued and boosting investor confidence. By buying back 1,400,000 shares at an average price of EUR 4.65, Nokia continues its efforts to reduce the number of outstanding shares and increase its earnings per share. This transaction could benefit Nokia’s shareholders through potential stock price increases and higher dividends. Moreover, the successful implementation of this share buyback program could encourage further investment and innovation in the telecommunications and technology sector.
- Nokia Corporation initiated a share buyback program in November 2024 to offset dilutive effects.
- The program aims to repurchase 150 million shares for a maximum aggregate purchase price of EUR 900 million.
- On 28 February 2025, Nokia acquired 1,400,000 shares at an average price of EUR 4.65.
- The buyback program could benefit Nokia’s shareholders through increased demand for its stock and potentially higher dividends.
- A successful implementation of the program could encourage further investment and innovation in the telecommunications and technology sector.
