Telecommunications giant Airtel Africa has initiated its second share buyback program, committing another $100 million to enhance shareholder value.
This development, announced on Monday via a statement on the Nigeria Exchange Group (NGX) website, follows the successful conclusion of an earlier $100 million buyback initiated in March 2023.
The latest buyback reflects the company’s adherence to its capital allocation policy and underscores the Board’s confidence in Airtel Africa’s growth trajectory, robust balance sheet, and consistent cash flow generation at the holding company level.
According to Airtel Africa, the initiative aims to optimize its capital structure and reduce the number of outstanding shares, thereby increasing shareholder returns.
The second share buyback program is structured in two tranches. The first tranche, valued at $50 million, begins immediately and is scheduled to conclude by April 24, 2025.
To facilitate this process, Airtel Africa has partnered with Barclays Capital Securities Limited (Barclays), which will manage on-market purchases of the company’s ordinary shares as a riskless principal operating independently of Airtel Africa.
“The sole purpose of the buyback program is to reduce the capital of the Company. As such, all shares purchased under the program will be canceled,” Airtel Africa clarified in its statement.
The company further assured that the buyback would adhere to stringent parameters outlined in its agreement with Barclays and comply with shareholder-approved guidelines, regulatory requirements, and market abuse regulations.
At the 2024 Annual General Meeting held on July 3, shareholders authorised the repurchase of up to 374,141,187 ordinary shares.
Following the completion of the previous buyback, the company’s remaining authority extends to 328,842,995 shares. Airtel Africa’s compliance with the Financial Conduct Authority’s UK Listing Rules and the Market Abuse Regulation (EU) ensures the buyback’s legitimacy and transparency.