Airtel Africa, a telecommunications and mobile money services provider, has announced the launch of a second share buyback programme aimed at returning up to $100m to its shareholders.
In a corporate notice filed on the Nigeria Exchange Limited on Monday, the company said the buyback reflects the board’s confidence in its continued growth potential, the strength of its balance sheet, and the consistent cash accretion at the holding company level.
“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.”
According to the company, “the buyback remains in line with the company’s existing capital allocation policy.”
The buyback programme will be conducted in two tranches, with the first tranche beginning today and expected to end on or before April 24, 2025. The first tranche will amount to a maximum of $50m.
Also, Airtel Africa has entered into an agreement with Barclays Capital Securities Limited to carry out on-market purchases of its ordinary shares, which the company will later purchase from Barclays.
Under this agreement, Barclays will act as a riskless principal and make decisions independently of Airtel Africa.
It noted that the sole purpose of the buyback programme is to reduce the company’s capital, and all shares purchased will be cancelled.
In August, Airtel Africa announced the second tranche of its $100m share buyback programme.
All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express written permission from PUNCH.
Contact: [email protected]