Airtel Africa has stated that it is embarking on the second phase of its share buyback program worth $100 million.
This was disclosed in a statement in the notice filed with NGX on Monday.
It outlined plans to repurchase 34,896,112 ordinary shares in total from Citigroup Global Markets on February 1st, 2024, and March 1st, 2024, at a volume-weighted average price of 110.35p over a 12-month period.
The second tranche of the share buyback is expected to conclude by December 19, 2024 with a maximum value of $50 million.
The telecom giant announced that it is buying its common shares from Citigroup Global Market Limited in order to facilitate the buyback.
“Under this agreement, Citi will act as a riskless principal and will make decisions independently of the company,” the document stated.
The aim of the buyback, according to Airtel Africa, is to reduce share capital as well as any potential debt obligations and operating cash costs associated with having too much share capital.
According to the report, the company will carry out the second tranche of the buyback according to the pre-set conditions it has with Citi.
“Any purchases of ordinary shares under the buy-back program by Citi will be carried out in accordance with certain pre-set parameters set out in the agreement with Citi, and Company purchases will be in accordance with (and subject to the limits prescribed by) the Company’s general authority to repurchase ordinary shares on the London Stock Exchange,” it stated.
It also stated that all transactions would be done with the permission of the shareholders of the company and in line with the resolutions made in their annual general meeting, which took place on July 3, 2024. “Shareholders gave the company authority to purchase a maximum of 374,141,187 ordinary shares.”
Recall Airtel Africa recorded a pre-tax profit that surges by 133.6% YoY to $74 million in the second quarter of 2024.
