Nokia Corporation’s Share Buyback Program: An Overview
On 24 March 2025, Nokia Corporation, with the LEI identification code 549300A0JPRWG1KI7U06 and ISIN FI0009000681, announced the acquisition of its own shares as part of a larger buyback program. This program was initiated by the company’s Board of Directors on 22 November 2024 to counteract the dilutive effects of new Nokia shares issued to Infinera Corporation shareholders and certain Infinera Corporation share-based incentives.
Details of the Share Repurchase
The repurchases took place on 24 March 2025 at various trading venues, including XHEL, CEUX, BATE, AQEU, and TQEX. The company acquired a total of 3,795,042 shares, with a weighted average price of EUR 4.93 per share.
Background of the Share Buyback Program
As per the announcement made on 22 November 2024, Nokia aimed to repurchase up to 150 million shares, with a maximum aggregate purchase price of EUR 900 million, under the authorization granted by the company’s Annual General Meeting on 3 April 2024. The repurchases are being carried out in compliance with the Market Abuse Regulation (EU) 596/2014 (MAR), the Commission Delegated Regulation (EU) 2016/1052, and are scheduled to last from 25 November 2024 to 31 December 2025.
Impact on Individual Investors
The Nokia share buyback program may positively impact individual investors in several ways. By reducing the number of outstanding shares, the buyback can lead to an increase in the earnings per share (EPS) and potentially boost the stock price. Additionally, it may signal the company’s confidence in its future growth prospects and financial position.
Global Implications
On a larger scale, Nokia’s share buyback program could have various implications for the global market. A decrease in the number of shares available for trading can lead to increased demand for the stock, potentially driving up the price. Furthermore, the buyback may indicate the company’s commitment to returning value to its shareholders and its belief in the strength of its business.
Conclusion
Nokia Corporation’s share buyback program, which began on 24 March 2025, represents a significant step for the company as it seeks to mitigate the dilutive effects of new shares issued and boost investor confidence. With a total of 3,795,042 shares repurchased at an average price of EUR 4.93, the buyback is expected to have both positive impacts on individual investors and the global market. As the program continues, investors will closely monitor Nokia’s progress towards its goal of repurchasing up to 150 million shares with a maximum aggregate purchase price of EUR 900 million.
- Nokia Corporation repurchased 3,795,042 shares on 24 March 2025.
- The buyback is part of a larger program initiated in November 2024 to offset the dilutive effects of new shares issued to Infinera Corporation shareholders and incentives.
- The repurchases took place at various trading venues, with a weighted average price of EUR 4.93 per share.
- The program aims to repurchase up to 150 million shares with a maximum aggregate purchase price of EUR 900 million.
- Individual investors may benefit from increased EPS and potential stock price growth.
- Global implications include increased demand for the stock and a signal of the company’s commitment to shareholder value.