By Ayomide Otitoju
Airtel Africa has commenced the second phase of its $100 million share buy-back programme, according to a notice filed with the Nigeria Exchange Limited on Monday. The new tranche, valued at up to $50 million, is scheduled to run until December 19, 2024.
In its statement, Airtel Africa, a leading telecommunications and mobile money services provider operating in 14 countries across Africa, announced, “The second tranche of the share buy-back will amount to a maximum of $50 million and is anticipated to end on or before December 19, 2024.” This follows the successful completion of the first tranche and earlier announcements made on February 1 and March 1, 2024.
Airtel Africa’s CEO, Raghunath Mandava, highlighted the strategic significance of the programme, stating, “The share buy-back programme is an integral part of our strategy to return value to our shareholders and to optimise our capital structure. By cancelling the repurchased shares, we aim to enhance shareholder value and reflect our commitment to maintaining a strong balance sheet. We remain committed to upholding the highest standards of regulatory compliance and transparency. This buy-back programme reflects our confidence in the long-term prospects of Airtel Africa and our dedication to delivering value to our shareholders.”
The company further explained that under this programme, the ordinary shares repurchased by Airtel Africa will be cancelled to reduce the company’s capital.
To manage the second tranche, Airtel Africa has engaged Citigroup Global Markets Limited, which will oversee the on-market purchases. Citi will operate as a riskless principal, independently deciding on the timing and amount of shares to purchase, with Airtel Africa subsequently buying the shares from Citi.
Jane Smith, Head of Equity Capital Markets at Citigroup, expressed the firm’s commitment to the initiative, stating, “We are pleased to support Airtel Africa in this significant capital management initiative. Our role as riskless principal allows us to execute the buy-back efficiently while adhering to all regulatory requirements. We look forward to helping Airtel Africa achieve its strategic objectives through this programme.”
The buy-back process will comply with the limits set by the company’s general authority granted by shareholders at the annual general meeting on July 3, which permitted the repurchase of up to 374,141,187 ordinary shares.
