Airtel Africa Plc has officially launched its second share buyback programme, aiming to return $100 million to its shareholders. Announced on December 23, 2024, this initiative follows a similar buyback earlier in March 2024, where the company had repurchased an equivalent amount of shares. This move highlights Airtel Africa’s continued commitment to maximizing shareholder value and optimizing its capital structure.
The programme will be rolled out in two phases. The first phase, which begins on December 23, 2024, and is expected to end by April 24, 2025, will focus on buying back up to $50 million worth of shares. Airtel Africa plans to reduce its capital base by canceling the repurchased shares, thus increasing the value of the remaining shares, while reinforcing its strong financial standing and long-term growth potential.
To carry out the buyback, Airtel Africa has partnered with Barclays Capital Securities Limited, which will manage the purchases of the shares on the open market. Under the agreement, Barclays will act as a riskless principal, making independent decisions on share acquisitions before selling them to Airtel Africa. This arrangement ensures that the buyback is conducted in a way that aligns with the company’s capital strategy, while staying within the limits of securities regulations.
The buyback initiative also reflects the confidence that Airtel Africa’s Board of Directors has in the company’s ongoing financial performance. The company’s strong balance sheet and consistent cash flow at the holding company level have positioned it to make this significant move, which is designed to create additional value for shareholders. By reducing the number of outstanding shares, Airtel Africa aims to drive up the value of the remaining shares, benefiting its investors in the long run.
This buyback is part of Airtel Africa’s broader capital management policy and comes after approval from the company’s shareholders at the Annual General Meeting (AGM) held on July 3, 2024. During the AGM, shareholders granted approval for the company to repurchase up to 374,141,187 of its ordinary shares. Following the successful completion of the previous buyback, Airtel Africa now has authorization to repurchase an additional 328,842,995 shares.
Overall, this move demonstrates Airtel Africa’s determination to create sustained value for its investors while adhering to the highest standards of financial governance. The buyback programme is a key component of the company’s ongoing strategy to optimize its capital structure, while reaffirming its ability to deliver consistent returns to shareholders.
As the first $50 million tranche of the buyback is expected to be completed by April 24, 2025, Airtel Africa’s continued focus on shareholder value signals strong potential for growth in the future. This initiative also comes at an interesting time as Nigerians have recently received approval to earn salaries in US Dollars while living in Nigeria, a development that could further shape the country’s economic landscape in the years ahead.
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