WATCH THE VIDEO HERE Telecommunications group, Airtel Africa has announced the commencement of a second share buyback, which would see the company return $100 million to its shareholders. The company announced this on Monday via a statement published on the Nigeria Exchange Group, (NGX) website. This followed the conclusion of an initial $100 million share buyback, which the company started in March this year. According to the company, the second buyback, which starts on Monday is in line with the Company’s existing capital allocation policy and 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 share buyback will be executed in two tranches, with the first tranche targeting a maximum of $50 million. “Under this agreement, Barclays will act as riskless principal and will make decisions independently of the Company. “The sole purpose of the buy-back program is to reduce the capital of the Company. As such, all shares purchased under the buy-back program will be canceled,” Airtel explained. The company noted that any purchases of ordinary shares under the buy-back programme would be carried out in accordance with certain pre-set parameters set out in the agreement with Barclays and in accordance with (and subject to the limits prescribed by) the Company’s general authority to repurchase ordinary shares granted by its shareholders from time to time. Airtel Africa is the second-most valuable company on the Nigerian Exchange (NGX) and it commands a dominant market capitalization of N8.11 trillion, accounting for 13.2% of the entire equity market. For shareholders, the buyback represents an opportunity to benefit from the company’s strategic decision to optimise its capital structure.
Airtel Africa begins second share buyback to return $100 million to shareholders
