Nokia Corporation’s Share Buyback Program: An In-depth Look
On 27 February 2025, Nokia Corporation announced the acquisition of its own shares as part of its ongoing share buyback program. The Finnish telecommunications giant purchased 1,400,000 shares across various trading venues, with the weighted average price per share being €4.72.
Background of Nokia’s Share Buyback Program
This share buyback program was initiated by Nokia’s Board of Directors in November 2024, with the primary objective of offsetting the dilutive effect of new Nokia shares issued to the shareholders of Infinera Corporation and certain Infinera Corporation share-based incentives. The program was authorized by Nokia’s Annual General Meeting on 3 April 2024 and is in compliance with the European Union’s Market Abuse Regulation (MAR), the Commission Delegated Regulation (EU) 2016/1052, and the authorization granted by Nokia’s AGM.
Details of the Share Buyback Program
The share buyback program started on 25 November 2024 and will continue until 31 December 2025. Nokia aims to repurchase a total of 150 million shares, with a maximum aggregate purchase price of €900 million.
Impact on Nokia’s Shareholders
For existing Nokia shareholders, this buyback program could potentially lead to an increase in the value of their shares due to the reduction in the number of outstanding shares. This could occur if the demand for Nokia shares remains constant or increases, as the total number of shares available on the market decreases.
Impact on the Global Market
On a larger scale, Nokia’s share buyback program could influence the telecommunications industry and the broader global market. By reducing the number of shares available, the company is effectively increasing the demand for its stock, which could lead to a rise in its stock price. This, in turn, could potentially make Nokia a more attractive investment opportunity for institutional investors and individual investors alike.
Conclusion
Nokia Corporation’s share buyback program, which began on 25 November 2024 and will continue until 31 December 2025, represents a strategic move by the company to offset the dilutive effect of new shares issued and to potentially increase the value of existing shares held by its investors. With the goal of repurchasing 150 million shares for a maximum aggregate purchase price of €900 million, the program could influence the telecommunications industry and the global market by increasing demand for Nokia’s stock and potentially raising its stock price.
- Nokia Corporation announced the acquisition of 1,400,000 shares as part of its ongoing share buyback program.
- The program aims to offset the dilutive effect of new Nokia shares issued to Infinera Corporation shareholders and incentives.
- The share buyback program started on 25 November 2024 and will continue until 31 December 2025.
- Nokia aims to repurchase a total of 150 million shares with a maximum aggregate purchase price of €900 million.
- Existing Nokia shareholders may see an increase in the value of their shares due to the reduction in the number of outstanding shares.
- The program could potentially influence the telecommunications industry and the global market by increasing demand for Nokia’s stock and potentially raising its stock price.
