Airtel Africa has announced the commencement of a second share buyback programme that will return up to $100 million to shareholders.
In a statement, the telecommunications company told regulators that the share buyback reflects the board’s confidence in the company’s continued growth potential, the strength of its balance sheet, and the consistent cash accretion at the holding company level.
The move to return money to shareholders remains in line with the company’s existing capital allocation policy, Airtel said in a regulatory filing. Explaining further, the management stated that the programme will be executed in accordance with applicable securities laws and regulations.
The telecom company said the share buyback programme would be phased over two tranches, with the first tranche commencing today and anticipated to end on or before 24 April 2025.
The first tranche will amount to a maximum of $50 million, according to an official statement. Airtel Africa revealed that it has entered into an agreement with Barclays Capital Securities Limited to conduct the first tranche of the buyback and carry out on-market purchases of its ordinary shares with the company subsequently purchasing its ordinary shares from Barclays.
Under this agreement, Barclays will act as a riskless principal and will make decisions independently of the company. The sole purpose of the buyback programme is to reduce the capital of the company. As such, all shares purchased under the buy-back programme will be cancelled.
Airtel said any purchases of ordinary shares under the buy-back programme will be carried out in accordance with certain pre-set parameters set out in the agreement with Barclays. This will also be in accordance with the Company’s general authority to repurchase ordinary shares granted by its shareholders from time to time
At the annual general meeting on 3 July 2024, shareholders gave the company authority to purchase a maximum of 374,141,187 ordinary shares, and following the completion of the previous buyback, the remaining authority amounts to a maximum of 328,842,995 ordinary shares.
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