Nokia Initiates Share Buyback Program to Offset Infinera Acquisition Dilution

Nokia Corporation, a global leader in B2B technology innovation, has announced a share buyback program aimed at offsetting the dilutive effect of new Nokia shares issued to the shareholders of Infinera Corporation and certain Infinera Corporation share-based incentives. The program, authorized by Nokia's Annual General Meeting on 3 April 2024, targets the repurchase of 150 million shares, with an aggregate purchase price not exceeding EUR 900 million. The repurchases will commence on 25 November 2024 and conclude by 31 December 2025.

The purpose of the repurchases is to reduce Nokia's capital and offset the dilution from issuing additional shares. The repurchased shares will be cancelled accordingly, reducing the Company's total unrestricted equity. This strategic move by Nokia is a proactive measure to manage share dilution and improve shareholder value.



Nokia's share buyback program is a strategic response to the dilutive effect of the Infinera acquisition. By repurchasing and cancelling shares, Nokia aims to maintain the value of its outstanding shares and mitigate the impact of the acquisition on shareholder value. This program is a testament to Nokia's commitment to its shareholders and its focus on creating long-term value.



The repurchases will be funded using the Company's funds in the reserve for invested unrestricted equity, and the repurchases will reduce the Company's total unrestricted equity. This approach allows Nokia to allocate its capital more flexibly, choosing to repurchase shares instead of distributing dividends or investing in other projects.

Nokia's share buyback program is a well-thought-out strategy to manage share dilution and improve shareholder value. By repurchasing and cancelling shares, Nokia is effectively reducing the number of outstanding shares in the market, which can have several positive impacts on the company's capital structure and shareholder value. These include increased earnings per share (EPS), improved return on equity (ROE), reduced dilution, and a signal of confidence in the company's future prospects.

In conclusion, Nokia's share buyback program is a strategic move aimed at offsetting the dilutive effect of the Infinera acquisition and improving shareholder value. By repurchasing and cancelling shares, Nokia is demonstrating its commitment to its shareholders and its focus on creating long-term value. As the program progresses, investors should monitor the market and assess the effectiveness of the program to ensure that Nokia's capital allocation strategy is achieving its intended goals.