Airtel Opens Share Buy-back Programme, Purchased 491,861 Shares

Airtel Africa has launched a share buy-back scheme that will return up to $100 million to owners over a 12-month period.

This follows its announcement on February 1, following the publication of its nine-month results for the fiscal year ending December 31, 2023.

In the same vein, the telecom company has announced that Airtel  has purchased 491,861 ordinary shares in aggregate, at a volume weighted average price of GBp 97.14 per ordinary share, since the commencement of the share buy-back programme announced on 1 March 2024.

Airtel Africa announced today it has purchased the following number of its ordinary shares of USD 0.50 each on the London Stock Exchange from Citigroup Global Markets Limited pursuant to the authority granted by its shareholders as part of its share buy-back programme, details of which were announced on 1 March 2024.

According to the telecommunications company, the share buyback which began on Friday, will be phased in two tranches, with the first tranche expected to complete on or before August 31.

The first tranche is worth a maximum of $50 million.

Airtel has signed an agreement with Citigroup Global Markets Limited to the principal of the first tranche of the buy-back and make on-market acquisitions of its ordinary shares, with the firm later purchasing those shares from Citi.

“Under this agreement, Citi will act as a riskless principal and make decisions independently of the company,” Airtel noted in a Nigeria Stock Exchange statement.

The operator said the sole purpose of the buy-back programme is to reduce the capital of the company. As such, all shares purchased under the buy-back programme will be cancelled.

“This buy-back programme reflects the significant progress made in recent years to reduce leverage and strengthen the company’s balance sheet.”

Airtel intends to enter into arrangements to commence a second tranche of the share buy-back programme also worth $50 million “in due course.”