Nokia Corporation’s Share Buyback Program: An In-depth Look
On the evening of March 11, 2025, Nokia Corporation (Nokia), a leading global communications technology and infrastructure company, announced the acquisition of its own shares. The shares were purchased from various trading venues, and the details are as follows:
Shares Acquired on March 11, 2025
- Trading venue: XHEL
- Number of shares: 2,814,307
- Weighted average price per share: EUR 4.77
- Trading venue: CEUX
- Number of shares: 1,166,899
- Weighted average price per share: EUR 4.76
- Trading venue: BATE
- Number of shares: –
- Weighted average price per share: –
- Trading venue: AQEU
- Number of shares: 173,264
- Weighted average price per share: EUR 4.76
- Trading venue: TQEX
- Number of shares: 135,752
- Weighted average price per share: EUR 4.76
Total: Nokia acquired 4,290,222 shares, with a weighted average price per share of EUR 4.77.
Background: Nokia’s Share Buyback Program
This share buyback program was initiated by Nokia’s Board of Directors on November 22, 2024. The purpose of the program is to offset the dilutive effect of new Nokia shares issued to Infinera Corporation shareholders and certain Infinera Corporation share-based incentives. The repurchases are being made in accordance with the Market Abuse Regulation (EU) 596/2014 (MAR), the Commission Delegated Regulation (EU) 2016/1052, and under the authorization granted by Nokia’s Annual General Meeting on April 3, 2024.
The repurchases began on November 25, 2024, and are scheduled to end by December 31, 2025. The target is to repurchase a maximum of 150 million shares for an aggregate purchase price of EUR 900 million.
Impact on Individual Investors
The share buyback program by Nokia may have a positive impact on individual investors who own Nokia shares. The program reduces the number of outstanding shares, which can lead to an increase in the earnings per share (EPS) and potentially, a rise in the share price. However, it is important to note that the share price is influenced by various factors, and the impact of a share buyback program may not be immediate or significant.
Impact on the World
The share buyback program by Nokia, while having a positive impact on its shareholders, may also have broader implications for the global economy. The program represents a significant investment by Nokia in its own company, which can contribute to economic growth and job creation. Furthermore, the program demonstrates Nokia’s confidence in its future prospects, which can boost investor confidence and encourage further investment in the communications technology sector.
Conclusion
Nokia’s share buyback program, which resulted in the acquisition of 4,290,222 shares on March 11, 2025, is part of a larger initiative to offset the dilutive effect of new shares issued to Infinera Corporation shareholders and certain Infinera Corporation share-based incentives. The program, which is scheduled to end by December 31, 2025, has the potential to positively impact individual investors through an increase in earnings per share and potentially, a rise in the share price. Additionally, the program has broader implications for the global economy, contributing to economic growth and investor confidence in the communications technology sector.
As always, it is essential for investors to carefully consider their investment strategies and consult with their financial advisors before making any investment decisions.
