Airtel Africa has launched a second share buyback program, committing $100 million to returning value to its shareholders.
The company disclosed this in a statement filed with the Nigeria Exchange Group, on Monday.
This comes after the successful completion of an initial $100 million share buyback program launched in March this year.
The company stated that the second buyback, commencing on Monday, aligns with its capital allocation policy and reflects the Board’s confidence in its growth prospects, robust balance sheet, and steady cash generation at the holding company level.
The share buyback will be executed in two tranches, with the first tranche targeting a maximum of $50 million.
This phase begins today and is scheduled to conclude on or before April 24, 2025.
“Under this agreement, Barclays will act as riskless principal and will make decisions independently of the Company.
“The sole purpose of the buy-back program is to reduce the capital of the Company. As such, all shares purchased under the buy-back program will be canceled,” Airtel explained.
The company stated that any purchases of ordinary shares under the buyback program would adhere to pre-set parameters outlined in its agreement with Barclays and comply with the limits established by the general authority granted by shareholders for share repurchases.
At the annual general meeting on July 3, 2024, shareholders authorized the company to purchase up to 374,141,187 ordinary shares.
Following the completion of the initial buyback, the remaining authority permits the repurchase of up to 328,842,995 shares.
Airtel also confirmed that the buyback complies with the Financial Conduct Authority’s UK Listing Rules 9.6 and the provisions of the Market Abuse Regulation (EU) No 596/2014.
Airtel Africa is the second-most valuable company on the Nigerian Exchange (NGX), with a commanding market capitalization of ₦8.11 trillion, representing 13.2% of the total equity market.
