Nokia Corporation: Repurchase of Own Shares

Impact on Nokia Corporation

On 2 January 2025, Nokia Corporation announced the acquisition of its own shares on the stock exchange. This strategic move is part of the company’s share buyback program, which was initiated by the Board of Directors to offset the dilutive effect of new shares issued to shareholders of Infinera Corporation and certain Infinera Corporation share-based incentives.

The repurchase of shares is in compliance with the Market Abuse Regulation and under the authorization granted by Nokia’s Annual General Meeting. The program started on 25 November 2024 and is set to end by 31 December 2025, with a target of repurchasing 150 million shares for a maximum aggregate purchase price of EUR 900 million.

Impact on Shareholders

Shareholders of Nokia Corporation can expect to benefit from the share buyback program in several ways. By repurchasing shares, Nokia aims to increase the value of existing shares by reducing the number of outstanding shares in the market. This can lead to an increase in earnings per share and potentially boost the stock price.

Additionally, the buyback program demonstrates Nokia’s confidence in its financial stability and long-term growth prospects, which could instill confidence in current and prospective shareholders.

Impact on the Global Market

The repurchase of own shares by Nokia Corporation can have ripple effects on the global market. As one of the leading telecommunications companies in the world, Nokia’s financial decisions are closely watched by investors and industry analysts.

If successful, the share buyback program could signal to the market that Nokia is committed to creating shareholder value and strengthening its position in the industry. This could have a positive impact on investor sentiment and lead to increased investment in the company.

Conclusion

In conclusion, Nokia Corporation’s repurchase of own shares aligns with its strategic goal of enhancing shareholder value and solidifying its position in the global market. By initiating this buyback program, Nokia is taking proactive steps to offset the dilutive effect of new shares and demonstrate its financial strength to shareholders and investors alike.