Nokia's Share Repurchases: A Strategic Move to Offset Dilution and Enhance Shareholder Value

Nokia Corporation, a global leader in B2B technology and innovation, has announced the repurchase of its own shares as part of a broader share buyback program. This strategic move aims to offset the dilutive effect of new Nokia shares issued to the shareholders of Infinera Corporation and certain Infinera Corporation share-based incentives. By repurchasing and cancelling its own shares, Nokia seeks to maintain the value of existing shares and prevent a significant decrease in earnings per share (EPS) due to the increased number of shares outstanding.

On 13 February 2025, Nokia repurchased 1,400,000 shares at an average price of EUR 4.72 per share, with a total cost of EUR 6,611,080. After these transactions, Nokia holds 243,703,874 treasury shares. The repurchases are funded using the Company's funds in the reserve for invested unrestricted equity and will reduce the Company's total unrestricted equity.



The share buyback program is expected to terminate if the acquisition is cancelled. However, if the acquisition is successful, the share buyback program will continue to offset the dilutive effect of the additional shares issued to Infinera shareholders and certain Infinera share-based incentives. This strategic move aligns with Nokia's long-term financial objectives, as it helps maintain the value of existing shares and prevents a significant decrease in EPS due to the increased number of shares outstanding.

Nokia's share repurchases also have potential implications for its future dividend policy and cash flow management. The repurchases could lead to an increase in EPS for remaining shareholders, potentially resulting in a higher dividend per share. However, the share buyback program's impact on cash flow management is expected to be minimal, as Nokia has maintained a strong balance sheet despite the repurchases.



In conclusion, Nokia's share repurchases are a strategic move aimed at offsetting the dilutive effect of the Infinera acquisition and enhancing shareholder value. The timing and volume of these repurchases are crucial for maximizing their impact on Nokia's capital structure and shareholder wealth. As Nokia continues to execute its share buyback program, investors should monitor the company's progress and assess the potential implications for its future dividend policy and cash flow management.