Nokia Corporation: Repurchase of own shares

Overview

On 10 December 2024, Nokia Corporation announced that it has acquired its own shares on the stock exchange. This move is part of Nokia’s share buyback program, which aims to offset the dilutive effect of new shares issued to the shareholders of Infinera Corporation and certain share-based incentives.

Details of the Share Repurchase

According to the Stock Exchange release, Nokia acquired a total of 872,093 shares with a weighted average price per share of €4.18. The repurchases are being done in compliance with the Market Abuse Regulation (MAR) and the authorization granted by Nokia’s Annual General Meeting.

Impact on Nokia and Shareholders

Nokia’s share buyback program is expected to have a positive impact on the company and its shareholders. By repurchasing shares, Nokia can improve its earnings per share and return value to its shareholders. Additionally, it demonstrates confidence in the company’s future growth prospects.

Effect on Individuals

For individual investors, the share buyback program could lead to an increase in the stock price and potentially higher dividends per share. It may also signal to investors that the company believes its stock is undervalued, which could attract more buyers.

Effect on the Global Market

The repurchase of Nokia’s shares could have a ripple effect on the global market, especially in the technology sector. It may influence investor sentiment towards other tech companies and impact overall market trends.

Conclusion

In conclusion, Nokia’s decision to repurchase its own shares is a strategic move aimed at creating value for its shareholders and strengthening its position in the market. The share buyback program reflects Nokia’s confidence in its business strategy and future growth potential.