Espoo-based Nokia (HE:NOKIA) Corporation has completed the second phase of its share buyback program, reinforcing its commitment to optimizing its capital structure and delivering value to its shareholders. The technology giant, known for its pioneering work in the telecommunications sector through Nokia Bell Labs, successfully repurchased 78,301,011 shares at an average price of EUR 3.83 per share from January to today. This move is part of a broader strategy to return EUR 600 million to shareholders and streamline the company's equity.
The buyback program, which began on February 14, 2022, with the first phase concluding on Sunday with the cancellation of 63,963,583 shares, represents a significant reduction in unrestricted equity by EUR 300 million. The second phase of this initiative started on January 2, 2023, following approval from the Annual General Meeting in April last year and concluded today with a similar reduction in unrestricted equity.
The program's execution involved targeted repurchases on Nasdaq Helsinki and selected multilateral trading facilities. With both phases now complete, Nokia holds a total of 162,962,734 treasury shares. The cancellation of the recently acquired shares is still pending.
Nokia's strategic focus remains on leading B2B technology innovation and providing secure and sustainable networks globally. The company's efforts are geared towards creating networks that are not only reliable but also capable of sensing, thinking, and acting to meet the demands of a rapidly evolving digital landscape.
InvestingPro Insights
According to InvestingPro, Nokia Corporation holds more cash than debt on its balance sheet, a positive indication of its financial health, which aligns with the company's recent efforts to optimize its capital structure. The company has also been consistently increasing its earnings per share, a trend that reflects its solid financial performance.
Despite some analysts revising their earnings downwards for the upcoming period, Nokia's stock generally trades with low price volatility, a fact that might appeal to investors seeking stability. Additionally, Nokia is a prominent player in the Communications Equipment industry, which is evident from its innovative strides in B2B technology and sustainable networks.
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