Nokia buys back shares to mitigate dilution

Published 26/11/2024, 20:34
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ESPOO, Finland - Nokia (HE:NOKIA) Corporation (NYSE:NOK) has repurchased 872,093 of its own shares at an average price of €4.01 per share on Tuesday, as part of a broader buyback program announced last week. This transaction is part of a strategy to offset the dilutive impact of issuing new shares to Infinera (NASDAQ:INFN) Corporation shareholders and for certain Infinera share-based incentives.

The share buyback, which commenced on Monday, is in line with regulations set by the Market Abuse Regulation (EU) and is authorized by Nokia's Annual General Meeting held on April 3, 2024. The program is expected to continue through December 31, 2025, with a target to repurchase 150 million shares at a maximum cost of €900 million.

Following the recent transactions, Nokia now holds 361,446,696 treasury shares. The company's buyback initiative is a common practice aimed at reducing the number of shares in circulation, which can help increase the value of remaining shares and provide a return of capital to shareholders.

Nokia is a global leader in B2B technology innovation, developing networks that are designed to be open and integrate seamlessly into various ecosystems. Their commitment to creating high-performance networks is supported by their intellectual property and long-term research conducted by the renowned Nokia Bell Labs.

The information regarding Nokia's share repurchase is based on a press release statement. The company's actions reflect a focus on managing shareholder value in the wake of its expansion and collaboration with Infinera Corporation.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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