Airtel Africa to Issue $100 Million to Shareholders for Share Buyback

Written By: Flipbz.org

Airtel Africa Plc has initiated a second share buyback program, aiming to return up to $100 million to its shareholders. This move reflects the board's confidence in the company's growth prospects, robust balance sheet, and consistent cash generation at the holding company level. 

The buyback will occur in two phases, each valued at $50 million. The first phase commences this week and is scheduled to conclude by April 24, 2025. Airtel Africa has engaged Barclays Capital Securities Limited to manage the process. Barclays will conduct on-market purchases of the company's ordinary shares, which Airtel Africa will subsequently repurchase from Barclays. In this arrangement, Barclays acts as a riskless principal, making decisions independently of Airtel Africa. 

All repurchased shares will be canceled, effectively reducing the company's capital and enhancing the value of the remaining shares. This strategy aligns with Airtel Africa's capital allocation policy and conservative capital structure. 

Operating in 14 markets across East, Central, and West Africa, Airtel Africa is among the highest-capitalized companies on the Nigerian stock exchange. 

In related developments, Airtel Nigeria, a subsidiary of Airtel Africa, recently secured three new licenses from the Nigerian Communications Commission (NCC). These licenses—National Long Distance, Internet Service Provider, and Sales & Installation Major—enable the company to expand its fiber network and enhance data services for customers in Nigeria.

Source: Legit.ng