Airtel Africa Plc has initiated a second share buyback program that aims to return up to $100 million to its shareholders. The purpose of this program is to reduce the company’s capital, and all repurchased shares will be cancelled.
The buyback program will be divided into two tranches, with the first one starting on December 23 and expected to end by April 24, 2025, with a maximum of $50 million allocated to this tranche.
Barclays Capital Securities Limited (Barclays) will be conducting the first tranche of the buyback by making on-market purchases of Airtel Africa’s ordinary shares, which will then be repurchased by the company from Barclays.
Airtel Africa stated that this share repurchase demonstrates the board’s confidence in the company’s growth potential, strong balance sheet, and consistent cash generation at the holding company level. The buyback aligns with the company’s capital allocation policy and will comply with relevant securities laws and regulations.
Any purchases under the buyback program will be governed by predetermined parameters outlined in the agreement with Barclays and within the company’s authority to repurchase ordinary shares granted by shareholders.
Following shareholder approval at the annual general meeting on July 3, 2024, Airtel Africa has the authority to repurchase a maximum of 328,842,995 ordinary shares after completing the previous buyback.
Author:
Iheanyi Nwachukwu is an experienced content writer with a background in banking, finance, and capital markets. With over 18 years of journalism experience, he currently serves as the Assistant Editor at BusinessDay. He holds a BSc in Economics from Imo State University and an MSc in Management from the University of Lagos. Nwachukwu has received training in Advanced Writing and Reporting Skills, News Agency Journalism, and Capital Markets Development and Regulations.
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