Nokia Corporation’s Share Buyback Program: An Overview
On 10 February 2025, Nokia Corporation, with the LEI identification code 549300A0JPRWG1KI7U06 and ISIN FI0009000681, disclosed the acquisition of its own shares in various trading venues. The details of the repurchase are as follows:
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Trading Venue (MIC Code):
XHEL
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Number of shares:
1,400,000
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Weighted average price per share, EUR:
4.72
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Trading venues:
CEUX, BATE, AQEU, TQEX
This share buyback is part of a larger program announced on 22 November 2024. Nokia’s Board of Directors initiated the program to offset the dilutive effect of new shares issued to the shareholders of Infinera Corporation and certain Infinera Corporation share-based incentives. The repurchases comply with the European Union’s Market Abuse Regulation (EU) 596/2014 (MAR), the Commission Delegated Regulation (EU) 2016/1052, and the authorization granted by Nokia’s Annual General Meeting on 3 April 2024.
The repurchase program started on 25 November 2024 and will end on 31 December 2025. Nokia aims to repurchase a maximum of 150 million shares, with a total purchase price of up to EUR 900 million.
Impact on Individual Investors
For individual investors, Nokia’s share buyback program could have several potential implications:
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Reduction in Shares Outstanding:
As Nokia repurchases its shares, the number of shares outstanding in the market decreases. This could lead to an increase in the earnings per share (EPS) and potentially boost the stock price.
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Price Support:
A large share buyback program can provide price support to a stock, as the buying activity can prevent or slow down a potential decline in the stock price.
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Dividend Yield:
The buyback program might not directly impact the dividend yield as Nokia has announced plans to maintain its dividend policy.
Impact on the Global Market
The global market could experience the following consequences from Nokia’s share buyback program:
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Impact on the Finnish Stock Exchange:
The Finnish stock exchange could see increased trading activity as investors react to Nokia’s share buybacks. This could lead to higher liquidity and potentially attract more foreign investors.
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Impact on the Technology Sector:
Nokia’s share buyback program is a sign of confidence from the company in its future growth prospects. This could encourage other technology companies to follow suit, leading to a trend of increased share buybacks in the sector.
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Impact on the European Market:
Nokia’s share buyback program is significant as it is one of the largest in Europe. It could potentially boost investor confidence in European companies and encourage more share buybacks in the region.
Conclusion
Nokia Corporation’s share buyback program, announced on 22 November 2024, is a substantial investment in the company’s future growth. The program, which started on 25 November 2024 and will end on 31 December 2025, aims to repurchase a maximum of 150 million shares for a total purchase price of up to EUR 900 million. Individual investors may benefit from the potential increase in earnings per share and price support. The global market could see increased trading activity, a potential trend of increased share buybacks in the technology sector, and increased confidence in European companies.
By repurchasing its own shares, Nokia is demonstrating its commitment to its shareholders and belief in the company’s future prospects. This could lead to a positive impact on the company’s stock price and overall market sentiment.
