The network equipment company Nokia says that it will speed up the buybacks of its own shares by increasing the number of buybacks made during the current year.
During the current year, Nokia will spend a maximum of EUR 600 million on buybacks of its own shares, while earlier it had said that it would spend a maximum of EUR 300 million on them.
Within the framework of the updated buyback program, Nokia can buy a maximum of 400 million of its own shares this year. Previously, the limit was 200 million shares.
So far, Nokia has bought its own shares this year for about 132 million euros, which means that the value of the purchases to be made during the rest of the year is about 468 million euros.
The increased buybacks start on July 22 at the earliest and end on the last day of the year at the latest.
According to Nokia, the purpose of the buybacks is to optimize the company’s capital structure by reducing equity. The repurchased shares are canceled accordingly.
The company’s invested unrestricted equity fund is used for buybacks, and buybacks reduce the company’s unrestricted equity. The shares will be acquired in public trading on the Helsinki Stock Exchange and in certain multilateral trading systems.
The price to be paid for the share is determined at the time of its acquisition in accordance with the prevailing price level in each market place, in compliance with the price and volume limits according to the safe harbor procedure.
Nokia notes that it may end the buyback program before its planned end date.
Source: www.arvopaperi.fi
