Nokia Boosts Shareholder Value with Strategic Buyback Initiative

Nokia Enhances Its Share Buyback Program

Nokia Corporation (NYSE:NOK) recently took a significant step in its financial strategy by acquiring 872,093 of its own shares. This acquisition was completed at an average price of €4.38 per share, a move that underscores the company’s ongoing commitment to enhancing shareholder value. The buyback is part of a broader initiative launched back in late November 2024, intended to counteract the potential dilution from new shares issued during its acquisition of Infinera Corporation.

Details of the Buyback Program

The share repurchase initiative, which started on November 25, 2024, is set to run until December 31, 2025. Nokia has outlined its ambition to repurchase as many as 150 million shares, with a total budget allocated for this of €900 million. This strategic buyback serves not only to bolster shareholder equity but also to enhance corporate stability amid fluctuating market conditions.

Nokia’s Financial Position Post-Acquisition

After this latest acquisition of shares, Nokia’s treasury now commands a total of 228,219,080 shares. The total expenditure for the shares purchased on that day came to €3,819,244, reflecting Nokia’s active approach to managing its capital structure.

Regulatory Compliance and Strategic Intent

This buyback program operates under a framework established by Nokia’s Annual General Meeting, conducted on April 3, 2024, and adheres to the Market Abuse Regulation (EU) 596/2014 as well as the Commission Delegated Regulation (EU) 2016/1052. By conducting this program, Nokia demonstrates its dedication to complying with legal standards while effectively supporting its long-term growth and shareholder interests.

Nokia's Commitment to Innovation

Beyond the buyback program, Nokia continues to invest heavily in research and innovation, particularly in the advancement of technology that enables networks to intuitively sense, analyze, and react to changing conditions. This focus on innovation is driven by the legacy of Nokia Bell Labs, which remains at the forefront of technological advancement.

Building Sustainable Networks

Nokia is actively dedicated to creating open architectures designed to fit seamlessly into a myriad of ecosystems. This commitment positions Nokia as a valued partner to service providers, enterprises, and technology innovators globally. The company not only emphasizes the delivery of secure and reliable networks but also explores new digital services and applications aimed at enhancing user experiences in a rapidly evolving digital landscape.

Driving Forward for the Future

The latest buyback initiative reflects Nokia's strategic plan to solidify its market position while ensuring returning value to its shareholders. This endeavor, coupled with its relentless pursuit of innovation and sustainability, reinforces Nokia's vision for a connected future that is both secure and efficient.

Frequently Asked Questions

What is the purpose of Nokia's share buyback program?

Nokia's share buyback program aims to enhance shareholder value and mitigate the dilutive effects of new shares issued during acquisitions.

How many shares has Nokia acquired in this buyback?

Nokia has acquired a total of 872,093 shares as part of its buyback strategy.

When did Nokia's share buyback program commence?

The buyback program began on November 25, 2024, and is scheduled to continue until December 31, 2025.

What is the total expenditure for the shares bought on Tuesday?

The expenditure for shares acquired on that day was €3,819,244.

How does this buyback align with Nokia's long-term goals?

This buyback aligns with Nokia's overall strategy to manage its capital effectively and focus on innovation while delivering returns to shareholders.

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