On Friday, Nokia Oyj (HE:NOKIA) announced the initiation of a share buyback program aimed at mitigating the dilutive effect of its acquisition of Infinera (NASDAQ:INFN) Corporation. The program is set to commence no earlier than November 25, 2024, and will conclude by December 31, 2025, at the latest. Nokia has designated a maximum of €900 million for the repurchase of up to 150 million shares, representing approximately 3% of the company's total shares.
The buyback program is intended to reduce Nokia's equity and counteract the dilution resulting from the issuance of new shares to Infinera shareholders and Infinera's current share-based incentive plans. The repurchased shares are slated for cancellation in accordance with the program's objectives. Funded by the company's invested unrestricted equity reserve, the buybacks will decrease Nokia's free equity.
The decision to proceed with the share repurchase follows the authorization granted to Nokia's board by the company's annual general meeting on April 3, 2024. Share acquisitions will be conducted on the regulated market of Nasdaq Helsinki and certain multilateral trading facilities. An external broker has been appointed to manage the program, making independent trading decisions without Nokia's influence. The buybacks will adhere to the safe harbor provisions of Article 5 of the EU Market Abuse Regulation (EU No 596/2014), ensuring compliance with established price and volume restrictions.
The price paid per share will reflect the prevailing market rate at the time of purchase. Nokia reserves the right to discontinue the buyback program ahead of the planned end date, and any such decision will be communicated through a stock exchange release. Nokia is a leading technology company that creates solutions to connect the world. With a focus on fixed, mobile, and cloud service networks, Nokia leverages its intellectual property and the research prowess of Nokia Bell Labs to remain at the forefront of network innovation.
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