Airtel Africa Plc has initiated its share buyback program following the announcement on February 1, 2024, after releasing its nine-month results up to December 31, 2023.
The company disclosed this information in a notice to the Nigerian Exchange Limited and the investment public.
As per the statement signed by Alastair Jones of Airtel Africa Investor Relations, the share buyback program will begin today and extend over a maximum of 12 months, aiming to return up to $100 million to shareholders.
The program will be conducted in two tranches, with the first tranche starting today and expected to conclude on or before August 31, 2024.
In the first tranche, the company will repurchase a maximum of $50 million through an agreement with Citigroup Global Markets Limited (“Citi”), where Citi will act as a riskless principal, making independent decisions. The purchased shares will be canceled, and the sole purpose of the buyback is to reduce the company’s capital.
The buyback will adhere to specific pre-set parameters in the agreement with Citi and comply with the general authority granted by shareholders at the annual general meeting on July 4, 2023, allowing the purchase of up to 375,815,150 ordinary shares.
The buyback program will follow the framework outlined in Chapter 12 of the Financial Conduct Authority’s Listing Rules and comply with the provisions of the Market Abuse Regulation (EU) No 596/2014.
Purchases may occur during closed periods, but no repurchases will take place on the Nigerian Stock Exchange. The company plans to initiate a second tranche of the share buyback program, amounting to up to $50 million, in due course.
