Nokia Corporation: Repurchase of Own Shares
Stock Exchange Release
19 December 2024 at 22:30 EET
On 19 December 2024, Nokia Corporation (LEI: 549300A0JPRWG1KI7U06) announced that it has acquired its own shares (ISIN FI0009000681) on the trading venue XHEL. A total of 872,093 shares were repurchased at a weighted average price of 4.23 EUR per share.
This share buyback program is part of Nokia’s strategy to offset the dilutive effect of new shares issued to the shareholders of Infinera Corporation and certain Infinera Corporation share-based incentives. The buyback program, which is in compliance with the Market Abuse Regulation (EU) 596/2014 and the Commission Delegated Regulation (EU) 2016/1052, was initiated by Nokia’s Board of Directors on 22 November 2024.
The buyback program is scheduled to run from 25 November 2024 to 31 December 2025 with a target of repurchasing 150 million shares for a maximum aggregate purchase price of EUR 900 million.
Impact on Me:
As a shareholder of Nokia Corporation, the share buyback program could potentially increase the value of my remaining shares by reducing the overall number of shares outstanding. This could lead to a higher earnings per share and potentially boost the stock price in the long run.
Impact on the World:
The share buyback program by Nokia Corporation could have a broader impact on the financial markets and investor sentiment. By reducing the number of shares in circulation, the buyback could signal to the market that the company believes its stock is undervalued, leading to increased investor confidence and potentially attracting more investors to the stock.
Conclusion:
In conclusion, Nokia Corporation’s share buyback program is a strategic move to enhance shareholder value and signal confidence in the company’s future growth prospects. By repurchasing shares and reducing the number of shares outstanding, Nokia aims to boost earnings per share and potentially increase shareholder returns in the long term.
