Nokia’s Share Buyback Program: A Closer Look
On 21 March 2025, Nokia Corporation (Nokia) announced the acquisition of its own shares as part of its previously announced share buyback program. The program was initiated by the Board of Directors on 22 November 2024 to offset the dilutive effect of new Nokia shares issued to Infinera Corporation shareholders and certain Infinera Corporation share-based incentives.
Details of the Share Buyback
Nokia acquired a total of 4,227,771 of its own shares on 21 March 2025. The shares were purchased from various trading venues, with the largest purchases made on XHEL and CEUX, each accounting for approximately 65% of the total shares bought. The weighted average price per share was EUR 4.92.
Background of the Share Buyback Program
The share buyback program was authorized by Nokia’s Annual General Meeting on 3 April 2024. It was initiated in compliance with the Market Abuse Regulation (MAR), the Commission Delegated Regulation, and the authorization granted by Nokia’s Annual General Meeting. The program aims to repurchase 150 million shares for a maximum aggregate purchase price of EUR 900 million.
Impact on Nokia Shareholders
The share buyback program is expected to benefit Nokia shareholders by reducing the number of outstanding shares, which could potentially lead to an increase in the earnings per share (EPS) and an improvement in the price-to-earnings (P/E) ratio.
Impact on the Global Market
The share buyback program could also have a positive impact on the global market by reducing the overall supply of Nokia shares and potentially increasing demand, leading to a higher stock price. Additionally, it could demonstrate Nokia’s confidence in its future growth prospects and financial performance.
Conclusion
Nokia’s share buyback program, which was announced on 22 November 2024 and executed on 21 March 2025, is a significant move that could benefit both the company and its shareholders. By repurchasing 4,227,771 shares for a total purchase price of EUR 20,309,191, Nokia is taking steps to offset the dilutive effect of new shares issued to Infinera Corporation shareholders and certain Infinera Corporation share-based incentives. The program could lead to an increase in earnings per share and a potential improvement in the price-to-earnings ratio for Nokia shareholders. Additionally, the program could have a positive impact on the global market by reducing the overall supply of Nokia shares and potentially increasing demand, leading to a higher stock price. Nokia’s confidence in its future growth prospects and financial performance is further demonstrated through this share buyback program.
- Nokia Corporation acquired 4,227,771 of its own shares on 21 March 2025.
- The shares were purchased from various trading venues, with the largest purchases made on XHEL and CEUX.
- The weighted average price per share was EUR 4.92.
- The program aims to repurchase 150 million shares for a maximum aggregate purchase price of EUR 900 million.
- The share buyback could lead to an increase in earnings per share and a potential improvement in the price-to-earnings ratio for Nokia shareholders.
- The program could have a positive impact on the global market by reducing the overall supply of Nokia shares and potentially increasing demand, leading to a higher stock price.
