Nokia has launched a share buyback program aimed at mitigating the dilutive impact of issuing new shares to Infinera’s shareholders as part of its planned acquisition of the optical networking company. Nokia said its initiative is designed to repurchase up to 150 million shares for an aggregate amount not exceeding EUR 900 million. The buyback program will commence on 25 November 2024 and is scheduled to conclude by 31 December 2025. If the Infinera acquisition is cancelled, the program will also be terminated. The repurchased shares will be canceled to reduce Nokia’s total capital, effectively offsetting the increase in shares resulting from the merger.
Nokia described its buyback is a strategic move to maintain the value of existing shares and manage the capital structure following the completion of the acquisition. The shares will be repurchased on the regulated market of Nasdaq Helsinki, and Nokia has appointed a third-party broker to manage the buyback, ensuring compliance with the EU Market Abuse Regulation. The buyback aligns with Nokia’s goal to minimize shareholder dilution while expanding its capabilities in the optical networking space, which will be further strengthened by Infinera’s portfolio of advanced optical solutions.
Key Highlights:
- Nokia launches a share buyback program to offset dilution from Infinera acquisition.
- Up to 150 million shares will be repurchased for a total amount of EUR 900 million.
- The program will run from 25 November 2024 to 31 December 2025, or until the acquisition is canceled.
- Shares will be repurchased on Nasdaq Helsinki and other trading platforms in accordance with EU regulations.
- Repurchased shares will be canceled to reduce Nokia’s total capital and mitigate dilution.