Network manufacturer Nokia will launch its own share buyback program, the company informs.
According to Nokia, the idea of the program is to compensate for the dilution effect that arises from issuing new shares Infinera Corporationin to shareholders and Inifineran of the current share-based incentives.
The shares are supposed to be cancelled, in which case the dilution effect could be compensated.
The company expects the number of daily buybacks to increase after the closing date of the Infinera transaction. The program will be terminated if the acquisition is not completed.
The goal of the program is to buy 150 million shares, which corresponds to about three percent of all the company’s shares. The total amount used for the acquisition is a maximum of EUR 900 million.
Redemptions will begin no earlier than November 25, 2024 and end no later than December 31, 2025.
In June, Nokia said it would buy California-based network solutions and semiconductor maker Infinera for about $2.3 billion. According to the offer, at least 70 percent of the purchase price will be paid in cash and a maximum of 30 percent in shares.