Nokia’s Share Buyback Program: A Detailed Look
On 5th March 2025, Nokia Corporation, a leading global communications technology and infrastructure company, announced the acquisition of its own shares as part of its ongoing share buyback program. The program was initiated by the Board of Directors in November 2024 to offset the dilutive effect of new shares issued to Infinera Corporation shareholders and their incentives. In total, Nokia purchased 3,642,769 shares, with each share costing an average price of 4.70 EUR.
Background:
The share buyback program was authorized by Nokia’s Annual General Meeting on 3rd April 2024. The program, which started on 25th November 2024 and will end on 31st December 2025, aims to repurchase a maximum of 150 million shares for a total purchase price of up to 900 million EUR.
The March 2025 Purchase:
The shares were purchased across different trading venues: XHEL, CEUX, AQEU, TQEX. The largest purchase was made on XHEL, with 2,314,879 shares bought, followed by CEUX with 962,572 shares. No shares were bought from BATE or AQEU, while 150,000 shares were purchased from TQEX.
Why is Nokia Repurchasing Shares?
Nokia’s share buyback program is an attempt to offset the dilutive effect of new shares issued to Infinera Corporation shareholders and their incentives. This means that Nokia is buying back its own shares to reduce the total number of shares in circulation, which can help increase the value of each remaining share.
Impact on Nokia Shareholders:
For existing Nokia shareholders, the share buyback program could lead to an increase in the value of their shares due to a decrease in the total number of shares in circulation. Additionally, the program demonstrates Nokia’s confidence in the value of its own stock.
Impact on the World:
The global impact of Nokia’s share buyback program is less direct. However, it could be seen as a positive sign for the overall health of the company and the technology sector. A successful share buyback program could lead to increased investor confidence and potentially boost the company’s stock price, which could have a ripple effect on other companies in the sector.
Conclusion:
Nokia’s share buyback program is part of a larger trend among companies to repurchase their own shares to offset dilution and increase the value of remaining shares. The program, which started in November 2024 and will end in December 2025, aims to repurchase a maximum of 150 million shares for a total purchase price of up to 900 million EUR. The March 2025 purchase of 3,642,769 shares is just one step in this process. For Nokia shareholders, this could lead to an increase in the value of their shares, while for the world, it could be a positive sign for the health of the technology sector.
- Nokia Corporation has repurchased 3,642,769 shares on 5 March 2025.
- The shares were purchased across different trading venues: XHEL, CEUX, AQEU, TQEX.
- The program, which started in November 2024, aims to repurchase a maximum of 150 million shares for a total purchase price of up to 900 million EUR.
- The share buyback program could lead to an increase in the value of existing Nokia shares.
- The program could be a positive sign for the health of the technology sector.
