Nokia’s Share Buyback Program: An Insight
Nokia Corporation, a leading global communications technology and infrastructure solutions provider, announced on 1 April 2025, the acquisition of its own shares as part of its previously announced share buyback program. The program was initiated on 25 November 2024, with the intention of offsetting the dilutive effect of new Nokia shares issued to the shareholders of Infinera Corporation and certain Infinera Corporation share-based incentives.
Details of the Share Buyback
According to the stock exchange release, Nokia acquired a total of 3,942,227 shares on 1 April 2025. The trading venues and respective number of shares, along with the weighted average prices, are as follows:
- XHEL: 2,069,501 shares, EUR 4.99 per share
- CEUX: 1,600,000 shares, EUR 4.99 per share
- BATE: –
- AQEU: 146,720 shares, EUR 4.99 per share
- TQEX: 126,006 shares, EUR 4.99 per share
Background of the Share Buyback Program
In November 2024, Nokia announced the initiation of this share buyback program. The program was designed to address the potential dilution resulting from the issuance of new Nokia shares to Infinera Corporation shareholders and certain Infinera Corporation share-based incentives. The repurchases were to be 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 3 April 2024.
Impact on Nokia Shareholders
Nokia’s share buyback program is likely to benefit existing shareholders in several ways. By reducing the number of outstanding shares, the earnings per share (EPS) will increase, leading to a higher share price. This can result in increased capital gains for shareholders, particularly if the share price rises above the average buyback price. Additionally, a lower number of outstanding shares can lead to a more concentrated ownership structure, potentially strengthening the voice of individual shareholders in company decisions.
Impact on the Global Market
Nokia’s share buyback program can have implications for the global market as well. A large repurchase program by a leading company like Nokia can contribute to overall demand for the stock, potentially driving up the price of the shares and boosting investor confidence in the communications technology sector. Furthermore, Nokia’s commitment to its share buyback program can signal a strong belief in the company’s future growth prospects, which could attract further investment from institutional and individual investors.
Conclusion
Nokia Corporation’s announcement of a significant share buyback program on 1 April 2025 is a noteworthy development for both the company and the global market. By repurchasing its own shares, Nokia aims to offset the dilutive effect of new shares issued to Infinera Corporation shareholders and certain Infinera Corporation share-based incentives. This move is expected to benefit Nokia shareholders through increased EPS and potential capital gains. Furthermore, the program’s potential impact on the global market includes increased demand for Nokia shares and investor confidence in the communications technology sector.
As Nokia continues to execute its share buyback program, it will be interesting to observe the potential implications for the company and the broader market. Stay tuned for further updates on this developing story.
