Airtel Africa, a prominent telecoms and mobile money provider with operations in 14 African nations, has announced the start of a second share buyback program that will provide shareholders a maximum return of $100 million.
The buyback of shares is a reflection of the Board’s belief in the firm’s capacity for further expansion, the stability of its balance sheet, and the steady accumulation of cash at the holding company level. Moreover, the repurchase is consistent with the company’s current capital allocation strategy. Program implementation will adhere to relevant securities rules and regulations.
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“Airtel Africa announces the commencement of a second share buyback programme that will return up to $100 million to shareholders. The share buyback reflects the Board’s confidence in the Company’s continued growth potential, the strength of its balance sheet, and the consistent cash accretion at the holding company level,” the company stated in a corporate notice submitted to the Nigeria Exchange Limited on Monday.
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Two phases are scheduled for the share buyback program; the first phase started on Monday and will conclude by April 24, 2025, at the latest. No more than $50 million will be included in the initial tranche.
“The buyback remains in line with the company’s existing capital allocation policy,” the statement added.
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Agreement between Airtel Africa and Barclays
The Company and Barclays Capital Securities Limited (“Barclays”) have reached an agreement whereby the Company will buy its ordinary shares from Barclays after the latter conducts the first tranche of the buyback and purchases its ordinary shares on the market.
Barclays will act as a riskless principal under this arrangement and make decisions on its own without consulting the company.
Reduced capital for the company is the only goal of the buyback program. All of the shares that were bought through the buyback scheme will, therefore, be cancelled.