Airtel Africa has announced the second tranche of its $100m share buy-back programme.
In a notice filed with the Nigeria Exchange Limited on Monday, the new phase, valued at up to $50m, is set to run until December 19.
“Airtel Africa, a leading provider of telecommunications and mobile money services, with a presence in 14 countries across Africa, announces the commencement today of the second tranche of its $100m share buy-back programme. This is further to its announcements on February 1, 2024, and March 1, 2024, and follows the completion of the first tranche of the Programme. The second tranche of the share buy-back will amount to a maximum of $50m and is anticipated to end on or before December 19, 2024,” the firm stated.
The company’s CEO, Raghunath Mandava, emphasised the importance 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.”
It stated that under the programme, Airtel Africa will repurchase its ordinary shares, which will be cancelled to reduce the company’s capital.
To manage the second tranche, Airtel Africa has engaged Citigroup Global Markets Limited to handle the on-market purchases.
According to the telco, Citi will operate as a riskless principal, making independent decisions regarding purchases.
Following those transactions, Airtel Africa stated that it would buy the shares from Citi.
Also, Citi’s Head of Equity Capital Markets, Jane Smith, noted, “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.”
It added that the process would 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.